The world’s largest sovereign wealth fund, Norges Bank Investment Management (NBIM), reported a staggering $40 billion loss in the first quarter of 2025, citing sharp declines in technology sector stocks as the primary driver behind the dip.
The Norwegian oil fund, which manages investments on behalf of the population using profits from Norway’s oil and gas revenues, posted a 415 billion kroner ($40 billion) loss for the quarter. The loss was announced Thursday by NBIM, which emphasized the role of volatility and ongoing global uncertainties, particularly in the tech market.
“The quarter has been impacted by significant market fluctuations. Our equity investments had a negative return, largely driven by the tech sector,” said NBIM CEO Nicolai Tangen in a press statement.
Equity Exposure Drags Performance
By the end of March 2025, NBIM’s total fund value stood at 18.53 trillion kroner. A significant 70% of the fund is allocated to equities, which declined by 1.6% during the quarter. These losses were primarily concentrated in the tech sector, where several leading stocks experienced steep sell-offs.
Notably, NBIM holds major stakes in several U.S. tech giants including Meta, Alphabet, Amazon, Nvidia, Tesla, and Microsoft. The downturn follows a broader $2.7 trillion sell-off in March, which affected the tech industry’s mega-cap stocks amid growing investor fears regarding U.S. trade tensions and tariffs under President Donald Trump’s administration.
The fund’s report also pointed to currency exchange fluctuations as a significant contributor to the decline. The Norwegian krone strengthened against major global currencies, leading to a valuation loss of 879 billion kroner, even though asset performance remained relatively stable in other areas. “The krone strengthened against several of the main currencies during the quarter. The currency movements contributed to a decrease in the fund’s value of -879 billion kroner,” NBIM stated.
Diversified Holdings Offer Some Stability
While equities dragged down overall performance, NBIM’s fixed-income investments — comprising 27.7% of the portfolio — delivered a positive return of 1.6% in the same period. Additionally, the fund’s exposure to unlisted real estate assets, which represent 1.9% of its total investments, rose by 2.4% in Q1.
NBIM manages the Government Pension Fund Global, commonly referred to as Norway’s sovereign wealth fund, which was established in the 1990s to invest surplus revenues from oil and gas production. Today, the fund holds positions in over 8,600 companies across 63 countries, making it one of the most influential investors in the world.
Tech Sector Shaken by Emerging AI Disruption
The poor performance in tech stocks comes after what had been a record-breaking year for the fund. In 2024, NBIM reported an all-time high annual profit of $222 billion, fueled by an AI-driven rally that lifted valuations of tech and semiconductor companies.
However, the sovereign wealth fund sentiment are shifted drastically in early 2025, as the market reacted to the rise of China-based AI firm DeepSeek, which claimed it had developed a powerful large language model comparable to ChatGPT, but at a significantly lower cost. This unexpected development sparked a sharp January sell-off, sending stocks like Nvidia and other AI leaders tumbling.
Long-Term Outlook Still Positive
Despite the recent volatility and quarterly loss, NBIM emphasized its commitment to long-term investing and diversification across global markets. As the fund adjusts to evolving tech dynamics and global economic shifts, analysts expect cautious moves from the Norwegian wealth giant, especially in sectors vulnerable to rapid innovation and regulatory change.
The $40 billion quarterly loss marks one of the most significant first-quarter setbacks in NBIM’s history. Yet, fund managers remain optimistic about recovery opportunities in the months ahead, particularly as markets adapt to new technologies and global policy developments.
