FSELX Nears $61.52 High as Semiconductor Rally Extends

The Fidelity Select Semiconductors Portfolio continues drawing attention as semiconductor stocks regain momentum across global markets. On 2026-08-05, the fund stayed close to its reported high near $61.52 after a strong multi-quarter rally powered by artificial intelligence demand, data center spending, and chip equipment growth. The semiconductor sector remains one of the market’s strongest performers, and FSELX has benefited from heavy exposure to leading chipmakers.

The fund posted a 1-year return above 86%, outperforming many technology-focused peers. Major holdings including NVIDIA, Broadcom, and Marvell Technology helped push returns higher during the latest semiconductor expansion cycle. The portfolio also maintains strong exposure to semiconductor equipment companies, which gained sharply during the industry’s fabrication upgrade phase.

For investors following semiconductor-focused mutual funds, the Fidelity Select Semiconductors Portfolio remains one of the most closely watched sector funds because of its concentrated exposure and long-term performance history.

Why the Fidelity Select Semiconductors Portfolio Keeps Climbing

Semiconductor Demand Supports Fund Momentum

The semiconductor industry continues expanding due to artificial intelligence servers, automotive chips, and cloud infrastructure upgrades. The Fidelity Select Semiconductors Portfolio invests at least 80% of assets in semiconductor-related businesses, creating direct exposure to this growth cycle.

Recent industry data showed the MSCI U.S. IMI Semiconductors & Semiconductor Equipment 25/50 Index gained 4.23% during the first quarter of 2026. Over the same period, the S&P 500 declined 4.33%. That divergence highlighted continued investor demand for chip-focused companies.

The fund delivered a 7.19% quarterly gain during that period. Semiconductor equipment companies played a major role in the rally. Applied Materials rose 33%, while Teradyne climbed 53% during the quarter. Advanced chip manufacturing demand continues supporting equipment makers worldwide.

Key drivers behind the rally include:

• AI infrastructure expansion.

• Data center hardware upgrades.

• Rising memory chip demand.

• Semiconductor fabrication investments.

• Growth in automotive electronics.

These trends continue supporting higher semiconductor spending across multiple industries.

Top Holdings Driving FSELX Performance

NVIDIA and Broadcom Lead Portfolio Strength

The Fidelity Select Semiconductors Portfolio remains heavily weighted toward large semiconductor leaders. NVIDIA represented roughly 24.07% of assets in recent holdings data, making it the fund’s biggest position. Broadcom followed at 11.64%, while Marvell Technology accounted for 8.65%.

Micron Technology, NXP Semiconductors, Monolithic Power Systems, and Lam Research also ranked among major holdings. These companies operate across AI computing, automotive semiconductors, networking chips, and advanced manufacturing equipment.

Top Holdings	Portfolio Weight
NVIDIA	24.07%
Broadcom	11.64%
Marvell Technology	8.65%
Micron Technology	7.02%
NXP Semiconductors	6.30%
Monolithic Power Systems	5.47%
Lam Research	5.23%

The fund’s concentrated structure allows strong participation during semiconductor rallies. However, concentration also increases volatility during market pullbacks. The fund’s beta recently measured 1.62, reflecting higher market sensitivity than broader indexes.

Historical Returns Show Strong Long-Term Growth

Performance Metrics Continue Beating Peers

The Fidelity Select Semiconductors Portfolio has delivered strong returns over multiple timeframes. Average annual returns reached 154.19% for one year ending April 2026. The three-year annualized return climbed above 61%, while the 10-year annualized return approached 35.74%.

Additional performance data showed:

• 2025 annual return: 42.90%.

• 2024 annual return: 43.51%.

• 2023 annual return: 78.14%.

• Five-year return: nearly 30%.

• Net assets: approximately $31.47 billion.

  
  

These figures demonstrate how semiconductor stocks benefited from AI adoption and digital infrastructure investments.

The fund also received a 5-star Morningstar rating within the technology category. Lipper rankings placed the portfolio near the top among science and technology funds over one-year, five-year, and ten-year periods.

Risks Investors Should Watch Carefully

Semiconductor Cycles Can Shift Quickly

The Fidelity Select Semiconductors Portfolio benefits from semiconductor momentum, but sector concentration creates higher volatility. Semiconductor stocks often experience sharp price swings due to inventory cycles, global demand changes, and geopolitical tensions.

Fidelity notes the electronics industry faces rapid obsolescence and intense competition. Semiconductor companies also remain sensitive to trade restrictions, manufacturing disruptions, and shifts in enterprise spending.

Several risk factors remain important:

• High exposure to technology stocks.

• Cyclical semiconductor demand patterns.

• Heavy dependence on AI spending growth.

• Global supply chain disruptions.

• Regulatory pressure on chip exports.

The fund’s narrow focus may create larger drawdowns during technology corrections. That remains important for investors monitoring short-term semiconductor trends.

Semiconductor Outlook Remains Strong

AI Spending Continues Supporting Chip Stocks

Artificial intelligence remains the largest catalyst for semiconductor demand entering the second half of 2026. Cloud providers continue expanding AI infrastructure, while enterprises invest heavily in advanced computing hardware. That environment supports companies held inside the Fidelity Select Semiconductors Portfolio.

Semiconductor equipment makers also continue benefiting from fabrication upgrades. Advanced lithography systems and memory chip production remain critical areas for future industry growth. Analysts continue watching AI server demand, GPU sales, and enterprise cloud spending for signs of sustained momentum.

The Fidelity Select Semiconductors Portfolio remains positioned directly inside these trends because of its concentrated semiconductor exposure. Its combination of AI leaders, equipment manufacturers, and memory producers continues supporting strong long-term performance despite sector volatility.