European markets need to get their act together, CEO of Norway's $2 trillion wealth fund says. ‘The winner takes it all'

• NBIM's top holdings are heavily concentrated in U.S. tech giants, including stakes of 1.3% in Nvidia ($56.89B), 1.23% in Apple ($49.23B), and 1.26% in Microsoft ($45.46B)
• The fund reported annual profits of $246.9 billion in 2025, largely attributed to the strength of the technology sector, highlighting Europe's lack of competitive AI companies
• Tangen expressed surprise at market stability amid the U.S.-Iran war, noting that despite energy shock concerns and elevated oil prices, markets have remained 'remarkably stable' with the MSCI World Index down only 3.6% since conflict began

Summary

Nicolai Tangen, CEO of Norway's $2 trillion sovereign wealth fund (NBIM), warned that European capital markets are in crisis and urged immediate reform to prevent further decline. Speaking at the Euronext Annual Conference in Paris, Tangen emphasized that "the winner takes it all," with capital flowing to markets offering the highest liquidity and valuations.

Key Portfolio Shifts

Over the past decade, NBIM's equity portfolio has dramatically shifted toward U.S. stocks. European holdings dropped from 41% to 21%, while U.S. equities now represent nearly 40% of the portfolio. The fund's largest holdings include:

• Nvidia: $56.89 billion (1.26% stake)
• Apple: $49.23 billion (1.23% stake)
• Microsoft: $45.46 billion (1.26% stake)
• Alphabet: $43.55 billion (1.15% stake)

NBIM, which manages the world's largest sovereign wealth fund established in the 1990s from Norway's oil and gas revenues, reported an annual profit of $246.9 billion in 2025, largely driven by tech sector strength.

Reform Recommendations

Tangen attributed the shift to U.S. dominance in AI and technology innovation, where Europe lacks strong competitors. He called for:

• Harmonized financial and corporate legislation across Europe
• Unified rules for easier cross-border trading
• Consolidated, less fragmented capital markets
• Improved capital flow infrastructure

Market Stability Concerns

Regarding the ongoing U.S.-Iran conflict, Tangen expressed surprise at market stability despite geopolitical tensions. The MSCI World Index declined only 3.6% since strikes began February 28, though he warned higher oil prices could create inflationary pressure. The IMF and market watchers echo calls for urgent European capital market reform.