Viking Calls AI Underweight a ‘Missed Opportunity’ After H1 Gain

Viking Global Investors acknowledged that its cautious exposure to artificial intelligence was a “missed opportunity” after its flagship hedge fund gained 2.6% in the first half of 2026, trailing peers that focused more heavily on AI such as Coatue Management, which rose 24.5%, and Lone Pine Capital, which gained 43%.

In a letter to clients this month, co-founder Andreas Halvorsen wrote: “Against the current market backdrop, we continue to exercise caution when buying stocks at valuations that, considering our forecast of revenue and earnings, offer little margin of safety.” The firm described its limited participation in the AI rally as a missed opportunity for returns.

The stance leaves Viking exposed to continued relative underperformance if the AI-driven rally persists. At the same time, the firm has adjusted its exposures to seek protection if investor enthusiasm and spending around the sector are reassessed.

The debate over valuations intensified after Alphabet raised its capital expenditure outlook. That update coincided with the largest one-day drop for the Magnificent Seven technology stocks since April 2025.

Viking manages about $56 billion in total assets and runs a flagship fund of roughly $26 billion. The firm estimates that about one-fifth of the flagship fund’s net exposure is linked to the AI ecosystem. Most of its public and private investments remain outside AI, with larger weightings in consumer, financial and industrial companies.

Some AI-linked positions contributed to returns despite the limited footprint. Samsung Electronics, a major semiconductor supplier, was the flagship fund’s strongest performer in the second quarter.

Viking has a history of emphasizing valuation discipline over momentum. The firm avoided much of the technology boom in 2020 and 2021 and did not suffer the double-digit losses that affected some rivals when that trade reversed.

Leadership wrote that they will not materially change the firm’s investment discipline. Viking has maintained a relatively stable investor base and its assets under management have stayed near current levels this year.