Fidelity Blue Chip Growth Still Rides High on Artificial Intelligence Beneficiaries
Fidelity Blue Chip Growth Still Rides High on Artificial Intelligence Beneficiaries
Publish Date: 2026-02-23 05:13:00
Source Domain: www.morningstar.com
Key Morningstar Metrics for Fidelity Blue Chip Growth Fund
- Morningstar Medalist Rating: Bronze
- Process Pillar: Above Average
- People Pillar: Above Average
- Parent Pillar: Above Average
Fidelity Blue Chip Growth FBGRX stands tall on the strength of its bold bets and seasoned leadership. Yet, its reliance on a market enthused with artificial intelligence beneficiaries leaves it exposed if the mood shifts.
A consistent overweighting in semiconductors has helped earn the fund one of the large-growth Morningstar Category’s best results over the past decade. A $10,000 investment in its no-load share class on Feb. 1, 2016, would have increased to nearly $65,000 by Jan. 31, 2026, well above the roughly $55,000 in a fund tracking the Russell 1000 Growth Index (the category’s benchmark). Few other funds managed to beat the index over that span. The portfolio’s semiconductor stake, which is dominated by sizable overweightings in Nvidia NVDA and Marvell Technology MRVL, recently amounted to roughly 24% of assets—more than the index’s 22% and the average peer’s 18%.
Nvidia and Marvell are riskier than most. Although both enjoy sound balance sheets, a slip in spending on AI infrastructure could send their shares plummeting. Their businesses have historically been prone to boom-and-bust cycles that have rocked their share prices. Indeed, Marvell plunged by one-fifth in 2025 as the index climbed by around the same amount. And supply chain disruptions—whether stemming from trade tensions, export controls, or geopolitical conflicts—are other shared risks.
But this fund has never been tame under manager Sonu Kalra. He builds a portfolio of 200-plus stocks that embraces companies with higher-than-average expected growth rates, at times paltry earnings relative to their share prices, and significant price fluctuations. These features position the fund to thrive when investors’ risk appetites increase, but they also set the stage for its underperformance when markets stumble…
