Jennison Associates 13F Portfolio

The biggest buys table makes one thing obvious: Jennison is rotating within tech toward the non-glamour AI winners. KLA, SanDisk, Credo Technology, and Texas Instruments form a deliberate push into the tools, memory, and connectivity required to sustain data center buildouts.

• KLA: A massive add, with position value up to $1.47B and shares up 1171.1%, signals a strong view that process control and inspection sit at the chokepoint of next-gen nodes, even as the mark-to-cost sits at a gain_vs_avg_buy_pct of -83.7%.
• SanDisk: A new $1.07B position at a portfolio_pct of 0.64% says Jennison wants direct exposure to NAND and storage, not just logic, as AI drives data intensity.
• Credo Technology: A 974.6% jump in shares to a $722.1M stake is a bet on high-speed connectivity and SerDes as bandwidth becomes the real constraint.
• Texas Instruments and Micron: With TXN shares up 35.7% and MU up 53.8%, they are rounding out the memory/analog side of the AI and industrial logic cycle.

On the software edge, adds to Datadog, Cloudflare, and Nebius Group — each with double-digit or triple-digit shares_change_pct — show they still want cloud-native observability, security, and data platforms, but are more selective than in 2021-style blanket SaaS buying.

Health care conviction is also climbing. Eli Lilly’s stake (value_usd $6.55B) is up 7.9% in shares, while Intuitive Surgical and Vertex see 20.7% and 9.4% share increases respectively. That’s a clear endorsement of durable pricing power in obesity drugs, cystic fibrosis/rare disease, and robotic procedures as growth vectors that rhyme with tech — high-margin, IP-heavy, and less macro-sensitive.

Funding all of this are disciplined trims in the market’s most crowded winners and a quiet cleanup in lower-conviction software. Nvidia is still the top holding at 7.72% of the book, but Jennison cut the share count by 13.0%, locking in roughly $1.93B of gains against an extraordinary gain_vs_avg_buy_pct above 2400%.

• Amazon and Microsoft: AMZN shares are down 12.0% and MSFT down 8.7%, together freeing over $1.76B. Both remain core positions, but this is classic sizing discipline after a huge run.
• Broadcom and Taiwan Semi: AVGO and TSM each see low double-digit or high-single-digit share reductions, consistent with a view that core AI enablement is fairly priced while semicap and niche connectivity offer better marginal upside.
• Alphabet and Meta: GOOGL and GOOG are trimmed modestly, as is Meta, suggesting fine-tuning rather than a change of mind on ad/search economics.

The harsher moves show where patience is running thin. Shopify is slashed by 58.0% of shares, a $1.08B estimated value reduction, suggesting concern over the risk/reward in e-commerce infrastructure at current multiples. Cadence Design and Snowflake see meaningful cuts, indicating Jennison is less willing to pay premium SaaS and EDA multiples when better value exists in semicap. Palantir, AppLovin, Oracle, and Disney all face notable trims as well — an unmistakable message that not every software or media growth story earns a place in a now more discriminating growth portfolio.

The sector bar chart shows technology still absolutely dominates the book at 66.41%, slightly higher than last quarter’s 66.11%. The real story is under the hood: Jennison is migrating from consumer-facing platforms and broad SaaS toward semiconductors, semicap equipment, and infra software, effectively moving capital from demand proxies to supply-side bottlenecks.

Consumer discretionary drifts down from 15.65% to 14.94% as they reduce Amazon, Walmart, Costco, Netflix, Disney, and Hilton. That’s consistent with an environment where the easy post-pandemic normalization trade is largely done and unit growth is more contested.

Health care rises to 7.03% from 6.20%, driven by Eli Lilly, Vertex, and Intuitive Surgical, signaling new confidence in secular healthcare innovation as an independent growth pillar. Industrials edge slightly lower on trims to Tesla and Boeing, even as they sharply increase Carpenter Technology, which fits the “picks and shovels” motif via specialty materials for aerospace and energy.

Financials, utilities, and energy remain small satellites. Modest reductions in Constellation Energy, Goldman Sachs, and NextEra Energy free incremental capital for high-conviction tech and health care without altering the fund’s identity: a concentrated, tech-heavy growth investor now skewed more toward AI’s enabling infrastructure than its marquee consumer interfaces.

Put together, the quarter reads as Jennison trying to own the irreplaceable layers of the AI and cloud stack. They’re willing to trim the most celebrated winners — Nvidia, Amazon, Microsoft, Broadcom — not because they’ve lost faith, but because the opportunity cost of not owning semicap, memory, connectivity, and select infra software has become too high.

The aggressive scaling in KLA, Credo, SanDisk, Texas Instruments, and Micron says they believe AI demand is sticky enough that capital will keep flowing into fabs, packaging, and data center build-outs regardless of near-term volatility. That view is reinforced by adds to Cloudflare, Datadog, and Nebius Group, which capture the edge security, observability, and data management layers as workloads proliferate.

At the same time, health care adds show a desire to diversify away from pure tech correlation by owning high-ROIC, IP-driven franchises like Eli Lilly and Intuitive Surgical. Trims in Shopify, Palantir, AppLovin, Oracle, and Disney reflect a portfolio that no longer needs every growth story — only those with structural advantages and clean, visible monetization.

If their thesis is right, the next leg of returns won’t be dominated by another rerating of mega-cap platforms, but by cash flows accruing to the complex, capital-intensive backbone that makes AI and data-intensive applications possible. This quarter’s moves position Jennison squarely for that world: less spectacle, more infrastructure, and a tighter definition of what counts as true long-duration growth.