From Morningstar:

Fidelity Global Technology, a top-performing tech fund, has avoided Nvidia stock despite its immense success in the AI-chip market. Lead manager Hyun Ho Sohn believes there are better investment options in AI technology. The fund has outperformed with a 21.4% annual return over the past decade, without holding popular stocks like Nvidia. Despite Nvidia’s recent strong performance, Sohn remains cautious, seeking undervalued AI-related stocks like Elastic or Nutanix.

While most tech funds hold about 13% of their portfolio in Nvidia stock, Fidelity Global Technology has a zero weighting in the semiconductor giant. Despite Nvidia’s 60% increase this year and 240% surge over the last four years, the fund has managed to outperform its competitors. The fund’s assets total €18 billion, with a stellar reputation earning a Morningstar Medalist Rating of Silver and 5 stars.

Focusing on long-term success, Fidelity Global Technology owns shares in Apple, Alphabet, Microsoft, and Amazon, among others. The fund’s main contributors to performance have been Apple, Microsoft, Alphabet, KLA, and Samsung Electronics, while detractions include Alibaba, Worldline, and other non-US tech companies. Despite avoiding popular semiconductor stocks, the fund remains successful and has been building its current positions strategically over the past few years.



Read more at Morningstar: Why This Top-Performing Fidelity Tech Fund Doesn’t…