Fidelity Blue Chip Growth Still Rides High on Artificial Intelligence Beneficiaries

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 or when value stocks—those with low price multiples and growth rates or high dividend yields—are in favor. It is an investment style that resembles other well-run Fidelity funds.

The fund’s present size poses challenges. It is one of the world’s largest actively managed large-growth strategies, with more than $120 billion in assets across all associated vehicles. That bulk makes it difficult for Kalra to invest meaningfully in the smaller-cap prospects that drove much of the fund’s past success. Still, that doesn’t necessarily relegate the fund to mediocrity. Kalra’s position moves tend to be gradual, and analytical support from Fidelity’s deep analyst bench helps in overseeing the fund’s sprawling portfolio.

Fidelity Blue Chip Growth Fund: Performance Highlights

The fund has posted phenomenal albeit volatile results under Kalra.

From his July 2009 start through January 2026, the 19.1% annualized gain of the mutual fund’s no-load share class beat the Russell 1000 Growth Index by 1.8 percentage points and outpaced 95% of large-growth category peers, which averaged 14.4% annualized. The fund’s excess returns have also been mostly consistent: Over the 164 monthly rolling three-year periods on Kalra’s watch, the fund outperformed the index two-thirds of the time and nearly always landed in the category’s top third. But the fund’s above-average volatility, as measured by standard deviation, dulled its risk-adjusted results. Kalra’s tenure has coincided with a mostly rising market led by stocks with relatively high price multiples and rapid growth expectations, which has supplied stylistic tailwinds to the fund’s returns over the long haul.

The fund’s style partly explains its dismal results in 2022 as inflation and interest rates soared and high-growth stocks fared especially poorly. Such underperformance is typical for this fund, which has seldom offered downside protection or outperformance when value stocks have been in favor. It has instead excelled during market rallies where risk-taking on companies with high price multiples, highly uncertain futures, or cyclicality is handsomely rewarded.

The fund’s huge allocation to semiconductors has been a big help since 2023, as real enthusiasm surrounding artificial intelligence powered the industry’s tremendous gains. Overweightings in Meta META and Uber UBER also contributed to the past few years’ outstanding results for the fund.