Introduction

The Fidelity Select Semiconductors Portfolio (FSELX) remains one of the strongest-performing semiconductor-focused mutual funds in 2026. The fund has benefited from continued demand for artificial intelligence, data center expansion, cloud computing infrastructure, and advanced semiconductor technologies. As of April 30, 2026, the fund managed more than $43.11 billion in net assets, highlighting strong investor interest in semiconductor-related opportunities.

A major factor behind the fund’s recent success is its significant exposure to NVIDIA. The company represents 22.48% of total portfolio assets, making it the largest holding in the fund. NVIDIA’s leadership in AI accelerators, GPUs, and data center technologies has helped drive returns across the semiconductor sector. Combined with substantial positions in Broadcom, Marvell Technology, NXP Semiconductors, and other industry leaders, the Fidelity Select Semiconductors Portfolio (FSELX) has positioned itself at the center of the AI-driven technology cycle. The fund’s strong performance reflects both stock selection and favorable industry trends.

Portfolio Overview

FSELX Continues to Focus on Semiconductor Leadership

The Fidelity Select Semiconductors Portfolio (FSELX) is designed to seek capital appreciation by investing primarily in semiconductor companies and related businesses. The strategy requires at least 80% of assets to remain invested in firms involved in semiconductor design, manufacturing, equipment, and supporting technologies.

The portfolio remains highly concentrated in industry leaders. Semiconductor companies account for 81.62% of total assets, while semiconductor materials and equipment companies represent 11.64%. This concentration allows the fund to closely track major trends affecting chip demand worldwide.

The fund's scale has also expanded significantly. Net assets reached approximately $43.11 billion during April 2026. This growth reflects both market appreciation and continued investor interest in semiconductor-focused investments.

NVIDIA Drives Portfolio Results

Largest Holding Carries Significant Influence

NVIDIA remains the dominant holding inside the Fidelity Select Semiconductors Portfolio (FSELX). The company represented 22.48% of total portfolio assets as of April 30, 2026.

Because nearly one-quarter of the fund is invested in NVIDIA, movements in the stock have a substantial impact on overall fund performance. NVIDIA's continued growth in AI infrastructure, machine learning hardware, and data center solutions has supported strong returns across semiconductor-related investments.

The size of NVIDIA's position also highlights management's confidence in long-term AI demand. As enterprises continue investing in advanced computing infrastructure, NVIDIA remains one of the most influential companies shaping semiconductor market performance.

Top 10 Holdings in FSELX

These positions collectively account for a substantial share of total portfolio assets and drive much of the fund's performance.

Performance Highlights

Strong Returns Across Multiple Time Periods

The Fidelity Select Semiconductors Portfolio (FSELX) has generated exceptional returns over recent years. Strong demand for AI technologies and semiconductor infrastructure has contributed significantly to performance.

Key performance figures include:

• NAV: $67.91 (May 28, 2026)

• Year-to-Date Return: 71.22%

• One-Year Return: 154.19%

• Three-Year Annualized Return: 61.23%

• Five-Year Annualized Return: 37.88%

• Ten-Year Annualized Return: 35.74%

These numbers place the fund among the strongest performers in the technology mutual fund category. Long-term returns demonstrate how semiconductor innovation continues creating opportunities across multiple market cycles.

Comparing FSELX Against Benchmarks

Semiconductor Exposure Creates Outperformance Potential

The Fidelity Select Semiconductors Portfolio (FSELX) has delivered returns that compare favorably with broader market benchmarks.

The data highlights the impact of semiconductor sector leadership. While broad market indexes produced solid gains, semiconductor-focused investments generated substantially stronger performance.

The fund's concentration within high-growth technology companies has allowed it to capture much of the upside associated with AI infrastructure spending and advanced chip demand.

Sector and Geographic Allocation

Heavy U.S. Exposure Supports Growth Strategy

Portfolio composition remains heavily tilted toward U.S.-based semiconductor companies. This reflects America's continued leadership in advanced chip design, AI infrastructure, and semiconductor innovation.

Key allocation data includes:

• U.S. Holdings: 90.57%

• International Holdings: 9.43%

• Semiconductors: 81.62%

• Semiconductor Equipment & Materials: 11.64%

• Technology Hardware: 3.09%

This structure gives investors broad exposure to companies leading technological advancement while maintaining a focused investment approach.

The relatively small international allocation still provides exposure to important global players such as ASML, helping diversify semiconductor manufacturing exposure.

What Investors Should Watch

AI Demand Remains the Key Driver

Several themes are likely to influence future performance of the Fidelity Select Semiconductors Portfolio (FSELX).

Important factors include:

1. Growth in AI infrastructure spending.

2. Data center expansion worldwide.

3. Semiconductor manufacturing investments.

4. Enterprise demand for accelerated computing.

5. Consumer electronics recovery.

6. Global chip supply trends.

Because NVIDIA accounts for 22.48% of assets, developments affecting AI hardware demand could have an outsized impact on fund results. Broadcom, Marvell Technology, and other major holdings also benefit from increasing data traffic and cloud infrastructure spending.

The semiconductor industry remains one of the most important areas of technology investment, making these trends critical to monitor.

Conclusion

The Fidelity Select Semiconductors Portfolio (FSELX) continues to stand out as one of the premier semiconductor-focused mutual funds in 2026. With more than $43 billion in assets, a 71.22% year-to-date return, and a remarkable 154.19% one-year gain, the fund has benefited from powerful industry tailwinds.

NVIDIA's 22.48% portfolio weight remains the defining characteristic of the fund. As the largest holding, the company plays a major role in shaping overall performance. Combined with significant allocations to Broadcom, Marvell Technology, NXP Semiconductors, and other industry leaders, the portfolio remains positioned to benefit from ongoing semiconductor innovation.

For investors seeking exposure to the semiconductor industry, the Fidelity Select Semiconductors Portfolio (FSELX) continues to offer concentrated access to some of the most influential companies driving technological advancement across the global economy.