The California Public Employees’ Retirement System Calpers, the largest public pension fund in the United States with over $500 billion in assets, made significant portfolio changes in Q4 2024. The pension fund sold significant holdings in Nvidia, Super Micro Computer, and AT&T in order to increase its stake in Rivian Automotive, an electric vehicle manufacturer.

Strategic Move by Calpers

Calpers made a strategic shift by selling 5.6 million shares of Nvidia, reducing its holdings to 59.7 million shares.  This decision was made despite Nvidia’s astonishing 171% stock price increase in 2024 as a result of the company’s dominant position in the AI and semiconductor industries.  The stock’s performance outperformed the S&P 500’s 23% growth, indicating that Nvidia is gaining a foothold in the AI industry. Nonetheless, concerns about the rise of Chinese AI players such as DeepSeek and the possibility of cheaper alternatives to Nvidia chips have fueled the pension’s strategy. 

While Nvidia’s market share remains strong, the more daunting prospect is the increased competition from global AI players. Calpers sold 256,743 shares of Super Micro Computer, reducing their remaining stake to 614,287 shares.  Despite this, Super Micro achieved an incredible 84% growth in 2025, driven by strong first-quarter results and a more optimistic outlook.

On the other hand, Calpers directly responded by making a significant investment in Rivian automotive, purchasing an additional 208,326 shares.  Rivian’s stock fell 43% in 2024, but Calpers sees a long-term future for the company and the EV market.  Along with Amazon’s delivery vans, Rivian’s collaboration with Volkswagen establishes it as a significant emerging player in the EV market.  However, Rivian continues to struggle, with its stock dropping 2.5% in early 2025.  These fluctuations highlight the risks associated with emerging technologies.

 Market Forces in Perspective

Calpers’ actions reflect broader market trends. AI, EVs, and semiconductors are all on the rise, but they face challenges from regulations, competition, and market turbulence. Nvidia, for example, is facing competition from more affordable and efficient alternatives. At the same time, Rivian’s stock price exemplifies the high reward, high risk paradigm of the EV investment thesis, in which a large payoff is contingent on the industry meeting its optimistic expectations.

Calpers’ stock decisions reflect a growing focus on AI and EV technologies, tempered by market uncertainty. These decisions strategically position the fund to capitalize on opportunities while mitigating risks associated with more unpredictable industries. The next few months will determine the investment’s success and the strategy for future pension fund investments.