Sei Investments Co doubles down on AI platforms and de-risks the periphery

Where conviction is rising, the pattern is unmistakable: Sei is treating AI platforms as core, not tactical trades.

• Nvidia (3.49%, up 12.7% in shares) remains the single largest disclosed position, with the fund sitting on a +302.0% gain versus its average cost. Adding more here is a statement that GPU scarcity, data center build‑outs, and AI training demand still have a long runway.
• Apple (+19.3% shares, +$461.5M by value) and Amazon (+10.2% shares, +$203.0M) join Alphabet’s GOOG line (+29.2% shares, +$380.2M) as scaled beneficiaries of AI at the application and cloud layer. The fund is not trying to pick a single AI app winner; it is owning the platforms that monetize usage across millions of customers.
• Broadcom (+23.4% shares, +$297.6M) and ASML (+223.7% shares, +$262.2M) round out the hardware spine of this thesis. Between Nvidia, TSM, AMD, Broadcom, and ASML, Sei is effectively constructing the capital equipment and chip stack that makes the AI boom physically possible.
• The book also quietly reinforces consumer and distribution leverage to digital demand: Netflix (+9.9% shares), Tesla (+17.0%), Booking (+96.5% shares), and Spotify (+1.8%) all see adds. These look less like standalone growth punts and more like downstream plays on higher compute and engagement.
• In fixed income, the new $311.6M position in PGIM’s PAAA and larger stakes in BND, BNDX, VTEB, and SPHY show a parallel bet: keep liquidity in short-duration, high-quality bond ETFs that can either cushion volatility or be redeployed into risk assets if AI multiples reset.

On the sell side, the pattern is not about abandoning themes; it’s about freeing capital from low-conviction, broad vehicles to pay for targeted growth and yield.

• Microsoft — still a 2.39% position — is trimmed modestly (-1.6% in shares, about -$41.1M), despite a solid +65.1% gain versus cost. That looks like a subtle rebalance away from arguably the most “crowded” AI platform to deepen exposure in Nvidia, Alphabet, and Broadcom where they see more incremental edge.
• The biggest cash sources by dollars are diversified international equity ETFs: VEA (-3.7% shares, -$60.1M), SCHV (-2.2%, -$30.9M), IEMG (-4.3%, -$28.2M), IEFA (-3.0%, -$9.8M), and a small trim in VBR. This is a classic rotation from cheap, broad international value and small-cap factors into specific growth names and higher‑quality bond funds.
• GE Vernova stands out: a -16.1% cut in shares (about -$73.1M) after a strong +150.2% gain. That looks like disciplined profit‑taking in a cyclical, capital‑intensive story to fund more durable secular themes.
• SCHO, a short-term Treasury‑focused ETF, is reduced by 10.0% in shares (-$45.1M), even as Sei adds elsewhere in munis and core bonds. The message: they prefer tax‑efficient and spread‑bearing fixed income (VTEB, MUB, SPHY) over pure front‑end duration.
• The small drifts lower in SCHA, Visa, VBR, and other factor sleeves are rounding‑error tweaks consistent with this move away from broad factor exposure toward specific franchises and structured bond sleeves.

The sector chart confirms what the single-name moves already imply: the fund is concentrating into tech and AI while quietly dialing down non-specific beta.

Technology’s weight climbs to 40.51% from 38.64%, driven not just by mega-cap platforms but by a full semiconductor and equipment bench (Nvidia, Broadcom, TSM, AMD, ASML). Consumer discretionary inches up to 8.05% from 7.78% on adds to Amazon, Netflix, Booking, and Tesla, reflecting confidence that AI-enabled services and higher-income consumers can still spend.

Unclassified holdings — mostly ETFs spanning global equities and bonds — drop to 40.82% from 43.31%, a meaningful shift given the firm’s ETF-heavy architecture. Within that bucket the mix changes: less broad international equity (VEA, IEMG, IEFA) and more nuanced fixed income (PAAA, SPHY, BND, BNDX, VTEB, MUB, SCHP), signaling a tilt toward income and capital preservation.

Defensive and late-cycle sectors see incremental upgrades rather than big swings. Health care edges up to 2.80% on larger Eli Lilly and Johnson & Johnson stakes, energy rises to 1.56% with adds to Exxon and Woodward, and financials move to 0.90% as JPMorgan is boosted by 35.3% in shares. Real estate ticks down slightly to 4.03% as they add to Welltower but let Mastercard and Visa drift, reflecting a modest quality REIT preference over transaction-driven payment names.

Taken together, the portfolio is more barbelled: a high-octane AI/tech core, balanced by a thicker, income-oriented ETF and bond layer plus measured exposure to energy and banks that can benefit if the cycle runs hotter for longer.

This 13F doesn’t look like a manager preparing for an AI bubble to burst; it looks like a manager underwriting a long, grinding monetization phase of AI, and arranging the rest of the portfolio around that thesis.

Building bigger positions in Nvidia, Alphabet, Broadcom, ASML, and AMD — all already showing triple‑digit gains versus cost in several cases — suggests Sei believes the market is still underestimating the duration and breadth of AI demand. The simultaneous adds to Apple, Amazon, and Meta show they expect incumbents, not upstarts, to capture most of the profit pool.

At the same time, the move into PAAA and the larger muni and core bond complex says they want the option to play offense if volatility returns. By trimming broad international ETFs and value factors, they are effectively saying that generic “cheap” markets are not enough; they want either clear secular growth or explicit yield and quality.

The incremental moves in energy and JPMorgan hint at a macro backdrop where higher-for-longer rates and industrial spending persist, which would support both cash-flow rich cyclicals and bank earnings. Healthcare adds, especially in Eli Lilly, keep a second secular growth engine in the portfolio through obesity and innovation in biotech.

Going forward, expect this book to stay concentrated at the top, with modest rebalancing around the AI complex funded by tactical trims in ETFs and cyclical winners. Unless the data fundamentally changes, Sei’s message this quarter is simple: own the infrastructure and platforms of the AI economy, and use a sophisticated bond sleeve to survive whatever the path looks like in between.