Global asset management leader BlackRock has released its 13F filing for the first quarter. The report indicates that during the period, BlackRock significantly increased its holdings in semiconductor and energy stocks, likely reflecting a positive outlook for these sectors amid the ongoing AI boom and geopolitical tensions involving Iran. Concurrently, the firm reduced its positions in five of the so-called "Magnificent Seven" U.S. tech giants, which had seen substantial gains over the preceding two years.
As a major Wall Street asset manager, BlackRock's ETF products represent a significant source of passive investment in U.S. equities. Consequently, its 13F holdings often serve as a barometer for broader market trends and shifts in market capitalization structure.
What were BlackRock's key moves in Q1? The report shows that the total market value of its U.S. equity portfolio stood at $5.72 trillion as of the end of the first quarter, down from $5.92 trillion in the previous quarter. During the quarter, BlackRock initiated positions in 327 new stocks, added to 2,920 existing holdings, fully exited 174 positions, and reduced its stake in 1,964 companies. The concentration of its top ten holdings was 27.73%, with Nvidia remaining its largest holding.
Ranked by the magnitude of weighting changes, BlackRock's top five additions in Q1 were Exxon Mobil, Johnson & Johnson, Chevron, Applied Materials, and Micron Technology. The substantial increases in energy giants Exxon Mobil and Chevron likely stem from the surge in international oil prices following the outbreak of conflict involving Iran in late February, enhancing the profitability prospects for these companies. Meanwhile, the fervent demand for AI and memory chips within the AI boom has driven semiconductor stock prices higher, which may explain the increased allocations to Applied Materials and Micron Technology.
BlackRock's top five reductions were in Microsoft, Nvidia, Tesla, Apple, and Meta—all members of the "Magnificent Seven" that had experienced significant rallies in prior years. Despite these cuts, these tech giants remained within BlackRock's top ten holdings.
As of quarter-end, BlackRock's top ten holdings, in order, were: Nvidia, Apple, Microsoft, Amazon, Google-A, Broadcom, Google-C, Meta, Tesla, and JPMorgan Chase. The only change in the top ten was JPMorgan Chase replacing Eli Lilly in the tenth position, with Eli Lilly moving to eleventh.
Apart from the five tech giants mentioned above that saw reductions, Google and Amazon were the only two among the group that did not experience a decrease in BlackRock's holdings.
Nvidia's portfolio weighting within BlackRock's holdings decreased from 6.13% in the previous quarter to 5.87%. Nevertheless, it retained its position as the top holding, with over 1.9 billion shares held and an end-of-quarter market value of approximately $335.8 billion, reflecting a reduction of about 18.27 million shares compared to the prior quarter.
Apple and Microsoft held the second and third positions, with end-of-quarter market values of approximately $290.5 billion and $219.6 billion, respectively. BlackRock's share counts in these companies decreased by 9.97 million and 8.56 million shares quarter-over-quarter.
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