Federated Hermes Q1 2026: Buying AI and the Power Grid

Federated Hermes reported a $61.49B U.S. equity book for the quarter ended March 31, 2026 (Form 13F-HR, accession 0001623632-26-000680, filed 2026-05-11), up about 2.5% on the quarter and roughly 46% over the past two years from around $42B in mid-2024. Behind that steady growth, the firm's Q1 2026 additions cluster around two of the market's biggest themes: artificial-intelligence hardware and the electricity demand that powers it.

Federated raised its Nvidia (NVDA) position by 14% and Broadcom (AVGO) by 10% — the AI-chip leg — while simultaneously adding 22% to GE Vernova (GEV) and 14% to Chevron (CVX), a clear lean into power generation and energy. It rounded out the buying with a 22% increase in telecom-income name Verizon (VZ).

The combination is telling: rather than betting on AI through semiconductors alone, Federated is buying the picks-and-shovels of the AI build-out across the value chain, from chips to the grid.

A diversified, steadily growing book

Federated runs a broadly diversified portfolio — its ten largest positions are only about 17% of the book, with roughly 83% spread across a long tail. Nvidia leads at 2.78%, followed by Alphabet's GOOGL shares at 2.46%, Apple (AAPL) at 2.04%, Microsoft (MSFT) at 1.93%, and AbbVie (ABBV) at 1.51%.

The light concentration means Federated's quarter is best read through its position changes rather than its weights. And those changes point consistently in one direction: adding.

The AI-and-power thesis

Stitching the additions together reveals a coherent thesis. On the compute side, Federated added to Nvidia and Broadcom — the chips behind AI training and inference. On the power side, it raised GE Vernova, a leading maker of gas and grid equipment, by 22%, and Chevron by 14%. The link between the two is the central infrastructure story of the cycle: AI data centers consume enormous electricity, and that demand flows to the companies that generate and deliver power.

Federated also leaned into income, raising Verizon by 22%, while trimming Amazon (AMZN) by 11% — one of the few reductions among its top names. The net effect is a book tilted toward the full AI-infrastructure chain plus defensive income.

Two years of steady growth

Federated's reported 13F value has climbed consistently — from roughly $42B in mid-2024 to $61.49B in Q1 2026 — without the sharp swings seen in more concentrated books.

That smooth trajectory is consistent with a diversified manager whose value tracks broad market gains and steady positioning rather than a few large bets. The thematic adds this quarter are what give the filing its character. Track the firm's quarter-over-quarter holdings on the Federated Hermes filer page.

FAQ

What is Federated Hermes?

Federated Hermes is a diversified global asset manager. It reported a $61.49B U.S. equity 13F book for the quarter ended March 31, 2026, up about 46% over two years.

What did Federated Hermes buy in Q1 2026?

Federated added to AI-chip names Nvidia (+14%) and Broadcom (+10%), power and energy names GE Vernova (+22%) and Chevron (+14%), and telecom-income name Verizon (+22%).

What is Federated Hermes' largest holding?

Nvidia (NVDA) is the largest position at 2.78% of the book, followed by Alphabet's GOOGL shares (2.46%) and Apple (2.04%) in a lightly concentrated portfolio.

What theme is reflected in Federated's Q1 2026 buying?

The additions span the AI-infrastructure chain — semiconductors (Nvidia, Broadcom) plus the power generation that supplies AI data centers (GE Vernova, Chevron) — alongside defensive income in Verizon.