Semiconductor stocks continue to perform strongly this year following an exceptional 2025. Growing demand, fueled largely by the ongoing excitement around artificial intelligence (AI), has made chip stocks some of the most attractive investment opportunities.

While concerns emerged several months ago over the sustainability of the AI boom amid the enormous amounts being spent by major technology companies, those worries have eased. Strong financial results from leading AI companies have helped restore investor confidence and renewed interest in semiconductor stocks.

Given the upbeat sentiment, investing in 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 DWS Science and Technology A (KTCAX Quick QuoteKTCAX - Free Report) , stands out as an attractive opportunity.

Semiconductor Market Maintains Strong Growth

Global semiconductor sales reached $146.8 billion in July, reflecting a 6.4% increase from June’s $137.9 billion, according to the Semiconductor Industry Association (“SIA”). Compared with July 2025, sales jumped 135.1% from $62.5 billion.

President and CEO of SIA, John Neuffer, said, “The global semiconductor market grew on a month-to-month basis for the 17^th consecutive month in July, and the industry has already reached its highest-ever annual global sales total just seven months into the year.”

Global chip sales have now increased for 17 consecutive months, while sales have risen during each of the first seven months of 2026.

AI-focused semiconductor stocks faced pressure several months ago as investors questioned whether the sector’s rapid expansion could continue. The uncertainty prompted some investors to move away from AI-related chip companies and toward more defensive investments.

That sentiment has since improved after several major AI semiconductor companies posted strong quarterly results and provided upbeat forecasts. The better-than-expected performances helped ease concerns about the AI industry and triggered another rally in semiconductor stocks.

Semiconductor companies have been an important contributor to broader market gains in recent years. The strong July performance came after an impressive first half of 2026 for the industry. Worldwide semiconductor sales reached $403.3 billion in the second quarter and $298.5 billion in the first quarter, representing sequential increases of 33.1% and 25%, respectively.

Semiconductors are now essential to virtually every modern and emerging technology, supporting advances in areas including the Internet of Things (IoT), 6G connectivity and AI.

Increasing demand from the automotive sector has also contributed to higher chip sales. Meanwhile, the AI industry remains in the early stages of expansion, encouraging major technology companies to commit billions of dollars to AI research, development and infrastructure.

As these companies continue to increase their investments in AI infrastructure, sentiment toward semiconductor stocks has remained broadly positive.

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 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 31.9% and 14.7%, respectively. The annual expense ratio of 0.78% is lower than the category average of 0.98%. JNGTX has a Zacks Mutual Fund Rank #2.

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 fund has a track record of positive total returns for over 10 years. Specifically, PRSCX’s returns over the three and five-year benchmarks are 31.2% and 14.5%, respectively. PRSCX’s annual expense ratio of 0.80% is lower than the category average of 1.03%. 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.

DWS Science and Technology A fund seeks growth of capital. Under normal circumstances, KTCAX invests at least 80% of net assets in common stocks of U.S. companies in the technology sector.

DWS Science and Technology A fund has a track of positive total returns for over 10 years. Specifically, KTCAX’s returns over the three and five-year benchmarks are 30.4% and 15.6%, respectively. The annual expense ratio of 0.87% is lower than the category average of 1.01%. KTCAX carries a Zacks Mutual Fund Rank #2.

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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