PIMCO fund manager trims US Big Tech, bets on Asia on AI

This signals a notable divergence in AI trade positioning: a major traditional asset manager is questioning the durability of US mega-cap earnings growth amid escalating capital spending, while seeking value in less-crowded Asian supply-chain and domestic-demand plays. It matters because PIMCO's flagship balanced fund represents mainstream investor capital, not just tech-focused hedge funds, potentially broadening the market's view of AI beneficiaries beyond US names. The shift to Chinese financials and healthcare suggests a bet on domestic consumption and policy support rather than export-driven tech, which could be a contrarian indicator for those sectors. Whether other large allocators follow this rotation—and whether US tech earnings justify their debt-fueled capex—is the key dynamic to monitor.