AI stocks drove $138bn in gains for US public pensions, WSJ finds (opens the source in a new tab)
- A WSJ analysis of 13 large public pensions finds a basket of 15 AI-linked stocks drove $138 billion in paper gains from late 2022 to June, rising to about 27% of their US equity holdings.
- Yet officials in the same states are slowing data centres: New York paused many new projects in July, and Pennsylvania’s governor tightened approval rules in August.
- The Equable Institute says the boom has nearly restored pre-2008 funding levels; a sharp downturn could leave governments facing tens of billions in costs.
- $138bn
- AI-linked paper gains, 13 funds, end-2022 to June
- 27%
- AI basket’s share of their US stocks
Why it matters Teachers and firefighters are quietly long the AI trade. Concentration risk now sits in retirement funds most beneficiaries never chose.
Other side Pensions mostly track indexes, so the AI weight reflects the market, not a bet. Selling to make a political point has cost retirees before, and trustees’ duty is to risk-adjusted returns.