The world's largest sovereign wealth fund reports a $138 billion profit in the first half, driven by the increasing demand for AI technology.

• In the first half of the year, equity investments provided a "very strong" return, as stated by Nicolai Tangen, CEO of Norges Bank Investment Management, on Wednesday.
• Tangen stated that the outcome was primarily influenced by technology stocks, as a result of the growing demand for innovative AI solutions.

The sovereign wealth fund of Norway reported a profit of 1.48 trillion kroner ($138 billion) in the first half, mainly due to strong returns on its investments in technology stocks.

At the end of June, the Government Pension Fund Global, the world's largest sovereign wealth fund, reported a value of 17.75 trillion kroner.

The fund's six-month return was 8.6%, 0.04 percentage points below the benchmark index's return.

In the first half of the year, equity investments provided a "very strong" return, as stated by Nicolai Tangen, CEO of Norges Bank Investment Management, on Wednesday.

Tangen observed that the outcome was primarily influenced by technology stocks, resulting from the growing demand for innovative AI solutions.

The equity portfolio of Norway's sovereign wealth fund returned 12.5% in the first half of the year, while its fixed income and unlisted real estate portfolios suffered slight losses.

The unlisted renewable energy infrastructure portfolio of the fund experienced negative returns of 17.7% during the first six months of the year, according to a report. The fund attributed the decline in the value of its investments to higher capital costs incurred during the period from January to June.

In a news conference, Tangen of NBIM stated that the stock markets were not anticipated to increase as they had in the past, as reported by Reuters.

Tangen reportedly stated that the current geopolitical situation is completely different, resulting in increased risks to global stocks due to uncertainty.

The sovereign wealth fund of Norway, one of the world's largest investors, was founded in the 1990s to invest the excess earnings of the country's oil and gas sector. Since its inception, the fund has invested in over 8,700 companies across 70 countries globally.