Vanguard Portfolio Management 13F Portfolio

The biggest adds are almost all about AI’s plumbing: memory, fabs, and the balance sheets that can sustain multiyear capex. The standout is Micron, where shares are up 7.1% and the position has grown by about $1.89B, even with the stock already up 179.4% versus the fund’s average cost — a clear statement that AI‑driven high‑bandwidth memory demand is still early in their model.

Nvidia, already a 4.67% anchor, still grew by roughly $1.54B, while Applied Materials saw a 7.5% share increase and about a $933.8M dollar lift. This trio says Vanguard wants exposure not just to AI chips, but to the capex cycle that will keep fabs and advanced packaging lines busy for years.

They layered on incremental risk to the AI software and cloud layer as well. Alphabet’s A and C shares together absorbed about $1.49B of fresh capital, and Apple saw another ~$776.1M, reinforcing the view that hyperscale and device ecosystems remain durable toll booths on AI usage. On the cyclical side, a roughly $507.7M add to Bank of America and a $554.1M increase in Intel signal a willingness to embrace both financial leverage to higher nominal growth and a more contrarian AI manufacturing recovery story.

The funding side of this quarter is blunt: take money out of storage and more marginal AI semis, redeploy into memory and core compute. Seagate, Western Digital and Marvell are three of the five largest dollar trims, with Seagate down 27.9%, Western Digital down 23.7% and Marvell slashed by 36.7% — all after triple‑digit percentage gains versus Vanguard’s cost basis.

This is less an abandonment of data infrastructure than a statement about where the profit pool will accrue. Storage vendors and certain networking names have run ahead of fundamentals; memory, tooling and leading GPU platforms still look under‑owned versus the spend Vanguard expects.

Outside pure tech, the selling is more surgical. Amazon, Costco, Broadcom and AbbVie are modestly trimmed, suggesting profit‑taking and sizing discipline rather than a macro call against consumer, semis or big pharma; the capital is simply being re‑aimed at higher‑conviction expressions of the same themes.

At the sector level this quarter looks quiet: technology only drifts from 63.73% to 63.6%, health care inches to 8.02%, and consumer discretionary dips to 7.51%. But the real shift is intramural — from peripheral beneficiaries toward core AI and balance‑sheet leverage.

Within technology, Vanguard is consolidating around semiconductors and equipment with direct AI volume leverage. Adds to Micron, Nvidia, Applied Materials and Intel are funded by cuts to Seagate, Western Digital, Marvell and small trims to Broadcom and KLA, effectively upgrading from volatile, index‑crowded names into capacity that must be built no matter how AI multiples settle.

Financials tick up from 4.91% to 4.98% as Bank of America and JPMorgan grow, hinting at a desire for credit‑cycle resilience and exposure to higher nominal GDP. Real estate and energy rise marginally via Welltower, Prologis, Equinix, Exxon and Chevron, adding yield and hard‑asset ballast around an AI‑centric core that the manager clearly does not want to dilute.

Looking ahead, Vanguard Portfolio Management appears committed to running an AI‑heavy book — but one that increasingly favors scale, cash generation and control of critical bottlenecks over pure narrative. The outsized conviction in Micron, Nvidia and Applied Materials, coupled with fresh capital into Intel and the Alphabet complex, says they still see a long runway for AI infrastructure capex and monetization.

At the same time, the aggressive harvesting in Seagate, Western Digital and Marvell shows a low tolerance for owning crowded, high‑beta AI plays once the easy money has been made. Expect more of this: sell the edges of the trade, reinforce the center where volume and pricing power are most durable.

The incremental build‑out in banks, REITs, energy and core health care suggests a portfolio being groomed for late‑cycle resilience around that AI core. If AI spending persists but volatility rises, this mix gives Vanguard a way to stay exposed to the upside while leaning on cash‑flowing, capital‑intensive names and systemically important financials to keep overall risk tolerable.