Calpers Trims Magnificent Seven Shareholdings 26% as AI’s Neocloud Funding Hits a Liquidity Wall

Calpers, the world’s fifth-largest pension fund, reduced its combined direct shareholdings in the Magnificent Seven technology stocks by 26% during the first half of 2026, according to Financial Times calculations based on regulatory filings. The fund manages more than $600 billion and is increasing its exposure to private equity as it seeks to spread its investments across a broader range of companies and reduce its dependence on a handful of stock-market leaders.

Deputy chief investment officer Anton Orlich told the FT that public equity valuations looked expensive and that the technology giants could underperform other investments. The tracked Magnificent Seven names and prices were Apple AAPL $343.96, Microsoft MSFT $532.61, Alphabet GOOG $314.22, Amazon AMZN $249.11, Nvidia NVDA $216.04, Meta Platforms META $629.00 and Tesla TSLA $391.53, all marked “Market Closed.”

The Roundhill Magnificent Seven ETF (MGAS) was up 7% year to date, led by Apple’s 34% gain and Nvidia’s 12% rise, while Meta, Alphabet and Tesla were down for the year. Calpers’ repositioning came as investors questioned stretched technology valuations and the sustainability of the artificial intelligence investment boom.

Elon Musk added to concerns about the returns generated by soaring AI spending, warning that financing had largely dried up for companies lacking substantial revenue outside AI data centers and predicting consolidation among neocloud providers. Musk’s SpaceX SPCX $146.90 · Market Closed raised $40 billion in debt to buy GPUs for AI calculations.

The warning weighed on neocloud shares in pre-market trading on Monday, Oct 26, 2026, with CoreWeave (CRWV), Cipher Digital CIFR $7.7100 · Market Closed and IREN IREN $25.43 · Market Closed all selling off.