A surge in oil prices, fueled by the Middle East crisis, has heightened concerns that inflation could rise further. Although the United States and Iran reached a peace deal on Sunday, it is unlikely that oil prices will return to normalcy soon.

Investors have been dumping technology stocks and moving toward defensive assets. Even so, excitement surrounding artificial intelligence (AI) has continued to support companies with strong exposure to the AI space.

The growing demand for AI chips has provided a major lift to semiconductor stocks, which have played a significant role in driving the broader market's gains over the past three years.

Given these trends, semiconductor funds, 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 Technology Portfolio (FSPTX Quick QuoteFSPTX - Free Report) stand out as attractive investment opportunities.

Semiconductor Revenues Continue to Climb

The Semiconductor Industry Association (SIA) reported last week that global semiconductor sales reached $110.5 billion in April, up 11% from March's total of $99.5 billion. Compared with April 2025, when sales stood at $56.9 billion, revenues surged 93.9% year over year.

“Global semiconductor sales increased on a month-to-month basis for the 14^th consecutive month in April, and the global market continues to notch robust year-to-year growth driven by sales into the Asia-Pacific region, the Americas, and China,” John Neuffer, SIA president and CEO, said.

Semiconductors have become indispensable to nearly every current and emerging technology, including IoT, 6G and artificial intelligence. Rising demand from the automotive industry has also contributed to stronger chip sales. At the same time, the rapidly expanding AI market — still in its early stages of development — is encouraging major technology companies to commit billions of dollars toward development and infrastructure.

The SIA also endorsed the World Semiconductor Trade Statistics' (WSTS) Spring 2026 forecast for the industry. WSTS expects the global semiconductor market to expand by 90% this year, reaching $1.51 trillion.

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 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 33.4% and 14.2%, respectively. The annual expense ratio of 0.81% is lower than the category average. 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 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 34.8% and 13.4%, respectively.  PRSCX’s annual expense ratio of 0.80% is lower than the category average. 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 Technology Portfolio seeks capital appreciation by investing most of its assets in common stocks of companies principally engaged in offering, using, or developing products, processes, or services that will provide or benefit significantly from technological advances and improvements.

Specifically, Fidelity Select Technology Portfolio’s returns over the three and five-year benchmarks are 36.6% and 18%, respectively. FSPTX has a Zacks Mutual Fund Rank #1, and its annual expense ratio of 0.61% is lower than the category average.

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

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