The semiconductor industry has seen rapid growth over the past two years, largely fueled by excitement around artificial intelligence (AI), particularly generative AI. A major force lifting the broader market has been AI-focused tech stocks. Continued increases in AI investment throughout 2025 suggest that investors remain confident about the long-term earning potential of these companies.

Given these conditions, mutual funds with a focus on semiconductors such as Janus Henderson Global Technology and Innovation Fund (JNGTX Quick QuoteJNGTX - Free Report) , T. Rowe Price Science & Tech (PRSCX Quick QuotePRSCX - Free Report) and Fidelity Select Semiconductors Portfolio (FSELX Quick QuoteFSELX - Free Report) stand out as attractive opportunities.

Semiconductor Sales Hit New Highs

Global semiconductor sales hit $75.3 billion in November, jumping 3.5% sequentially and surging 29.8% from the year-ago levels of $58 billion in November 2024, according to the Semiconductor Industry Association (SIA). This marks the strongest November on record for the industry.

That momentum followed a solid start to the fourth quarter, with October sales totaling $72.7 billion, up 4.7% month over month and 27.2% on a year-over-year basis. John Neuffer, SIA president and CEO, said, “The global semiconductor industry posted its highest-ever monthly sales total in November, with demand increasing across all major product categories on a month-to-month basis.”

The market’s steady expansion has been evident throughout the year. Third-quarter semiconductor sales totaled $208.4 billion, up 15.8% from the previous quarter, SIA data shows.

AI Demand Continues to Fuel Growth

Much of the rally in semiconductor stocks is being driven by rising enthusiasm surrounding AI and the sharp increase in demand for advanced chips. With the AI market still in its early stages, major tech companies are investing billions of dollars, increasingly highlighting AI-driven businesses as a central contributor to future revenue growth.

AI-specific chips have become essential as their use spreads from large-scale data centers to everyday consumer devices. At the same time, a rebound in demand for memory products like NAND flash and DRAM is supporting more specialized computing needs and powering AI-intensive workloads. Against this backdrop, mutual funds focused on semiconductors appear well-positioned for near-term upside.

3 Best Choices

We have, thus, selected three mutual funds with significant exposure to semiconductor producers. These funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and are poised to gain from the above factors. Moreover, these funds have encouraging three- and five-year returns. Additionally, the minimum initial investment is within $5000.

We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.

The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Janus Henderson Global Technology and Innovation Fund

Janus Henderson Global Technology and Innovation Fund aims for long-term growth of capital and specializes in technology. JNGTX invests at least the majority of its net assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology.

Janus Henderson Global Technology and Innovation Fund has a track of positive total returns for over 10 years. Specifically, JNGTX’s returns over the three and five-year benchmarks are 33,2% and 14.4%, respectively. The annual expense ratio of 0.83% is lower than the category average of 0.99%. Janus Henderson Global Technology and Innovation Fund has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category and other #1 or 2 Ranked Mutual Funds, please click here.

T. Rowe Price Science & Tech

T. Rowe Price Science & Tech fund seeks to invest in long-term capital growth by investing at least 80% of net assets in common stocks of companies expected by T. Rowe Price to benefit from the development, advancement, and use of science and technology. While most of PRSCX’s assets are invested in U.S. common stocks, other securities may also be purchased, including foreign stocks, futures, and options, in keeping with the fund’s objectives.

T. Rowe Price Science & Tech has a track record of positive total returns for over 10 years. Specifically, PRSCX’s returns over the three and five-year benchmarks are 36.1% and 14.6%, respectively. PRSCX’s annual expense ratio of 0.81% is lower than the category average of 1.05%. PRSCX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.

Fidelity Select Semiconductors Portfolio

Fidelity Select Semiconductors Portfolio fund seeks capital appreciation. FSELX normally invests at least 80% of its assets in common stocks of companies principally engaged in the design, manufacture, or sale of electronic components (semiconductors, connectors, printed circuit boards, and other components); equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors.

Fidelity Select Semiconductors Portfolio fund has a track of positive total returns for over 10 years. Specifically, FSELX’s returns over the three and five-year benchmarks are 48% and 31.6%, respectively. The annual expense ratio of 0.62% is lower than the category average. FSELX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.

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