2026-Q2 Capital International Investors 13F Filing: Capital International's +$8.97B bet ignites semiconductor rotation

Capital International Investors' 2026-Q2 13F reads like a fund declaring war on its own old allocation: the Information Technology sleeve surged from 0.2908 to 0.3539 of the portfolio while every other sector except Real Estate gave up ground, and the holding count crept up from 438 to 446. Turnover collapsed to 0.277021 from 0.54878, which means this was not indiscriminate churn — it was a targeted raid on the semiconductor complex, financed by harvesting gains from last cycle's mega-cap winners.

The Semiconductor Accumulation

• MU — Add. The loudest move of the filing: the position grew by +$8.97B, from $3.01B to $11.98B, with weight vaulting from 0.71% to 2.48%.
• KLAC — Add. Chip-equipment exposure grew by +$6.70B; weight moved from 0.94% to 2.21%.
• INTC — Add. A $316.9M starter stake was scaled into a $5.38B position; weight jumped from 0.07% to 1.11%.
• ASML — Add. Lithography exposure grew by +$2.50B; weight from 0.54% to 0.99%.
• TSM — Add. Foundry exposure grew by +$1.75B; weight from 0.89% to 1.15%.
• APH — Add. Interconnect exposure grew by +$3.12B; weight from 1.05% to 1.57%.

New Positions Opened

• CSCO — New Buy. Opened at $2.66B, a 0.55% starting weight.
• WDC — New Buy. Opened at $1.15B, 0.24% weight.
• COHR — New Buy. Opened at $1.42B, 0.29% weight.
• 02079K602 — New Buy. Filed under a CUSIP-format identifier; opened at $1.04B, 0.22% weight.
• 02079K404 — New Buy. Also CUSIP-format; opened at $1.02B, 0.21% weight.

More Buying Elsewhere

• DE — Add. Grew by +$3.11B; weight from 0.22% to 0.84%.
• MRK — Add. Scaled from $104.7M to $1.98B; weight from 0.02% to 0.41%.
• V — Add. Grew by +$1.22B; weight from 1.68% to 1.73%.
• WELL — Add. Grew by +$1.89B; weight from 1.66% to 1.85%.
• PSA — Add. Grew by +$1.30B; weight from 0.40% to 0.63%.
• AAPL — Add. Grew by +$1.56B; weight from 2.16% to 2.23%.

Trims: Value Fell With the Share Count

• AMGN — Trim. The deepest cut in the file: value fell by -$1.90B, from $2.51B to $604.0M; weight collapsed from 0.59% to 0.12%.
• NOC — Trim. Value fell by -$1.86B; weight from 1.13% to 0.62%.
• TTE — Trim. Value fell by -$1.16B; weight from 1.14% to 0.76%.
• COP — Trim. Value fell by -$1.10B; weight from 0.96% to 0.62%.
• CRM — Trim. Value fell by -$1.08B; weight from 0.55% to 0.26%.

Trims: Price Gains Masked Real Selling

• NVDA — Trim. Shares were genuinely sold, but the price gain outweighed the value of the trimmed shares, so reported value still rose from $17.03B to $18.60B; weight eased from 3.99% to 3.85%. Selling, not buying.
• AVGO — Trim. Real selling — price appreciation carried reported value from $25.99B to $30.90B even as shares left the book; weight actually firmed from 6.09% to 6.39% on price alone. Not a buy.
• GOOG — Trim. Shares sold; price strength lifted reported value from $13.14B to $14.85B; weight essentially flat, 3.08% to 3.07%. Appreciation masked the sale.
• AMZN — Trim. Shares sold; value rose from $9.15B to $10.28B on price alone; weight from 2.14% to 2.12%.
• PM — Trim. Shares sold; value rose from $12.03B to $13.07B on price alone; weight from 2.82% to 2.70%.
• LLY — Trim. Shares sold; value rose from $5.62B to $6.88B on price alone; weight from 1.32% to 1.42%.
• GE — Trim. Shares sold; value rose from $5.45B to $6.84B on price alone; weight from 1.28% to 1.42%.

Full Exit

• RSG — Sold Out. The entire $1.17B position (0.27% weight) was liquidated to zero.

Read the buy list as one sentence and the thesis writes itself: memory (MU), lithography (ASML, KLAC), foundry (TSM, INTC), interconnect (APH), storage (WDC), networking (CSCO) and optics (COHR) — Capital International Investors assembled the entire semiconductor supply chain in a single quarter instead of betting on one horse. The IT sleeve's jump from 0.2908 to 0.3539 of assets, against shrinking weights nearly everywhere else, marks this as funded rotation rather than fresh cash sprayed across the market. Turnover of 0.277021, down sharply from 0.54878, shows a desk that concentrated its ammunition into one theme, and the momentum tilt flipping from -0.008282 to 0.151375 percentage points confirms the book now leans with the very trend it bought.

The sell side is equally deliberate. Every mega-cap that got trimmed — NVDA, GOOG, AMZN, PM, LLY, GE — was cut into rising prices, which is textbook gain-harvesting: sell into strength, bank the appreciation, redeploy into the chip complex. Energy de-risking (TTE and COP both trimmed, sector weight down from 0.0308 to 0.0227), the NOC reduction, the AMGN slash and the outright RSG exit complete the picture of a manager clearing out last cycle's trades to make room for the next one. Underneath the high-beta semiconductor core sit quieter adds — V, WELL, PSA, MRK, DE — a defensive income ballast. And the HHI ticking up from 0.015811 to 0.016183 seals it: this portfolio got more concentrated on purpose.

Key Takeaways

• Semiconductors defined Capital International Investors' 2026-Q2: MU, KLAC, INTC, ASML and TSM were all aggressively added, three new hardware positions (CSCO, WDC, COHR) were opened, and the IT sleeve rose from 0.2908 to 0.3539 of the portfolio.
• The funding came from selling into strength — NVDA, GOOG, AMZN, PM, LLY and GE were all genuinely trimmed even as their dollar values climbed on price — alongside deep cuts to AMGN, NOC, TTE, COP and CRM and a full exit from RSG.
• The operation narrowed: turnover fell to 0.277021 from 0.54878 while holdings rose from 438 to 446 and HHI concentration ticked up from 0.015811 to 0.016183 — fewer, larger, more deliberate bets.