Fidelity Portfolio Manager Chris Lin favors three areas of the market where he sees attractive mispricing relative to earnings potential and the durability of long-term growth.
“Recently, we’ve invested in several companies – including those in artificial intelligence, materials and financials − whose stock prices do not reflect the earnings-growth prospects we forecast,” says Lin, who co-manages Fidelity® Growth Discovery Fund (FDSVX) with Dan Kelley.
The managers apply a large-cap growth bias to the diversified domestic equity strategy, believing that a company’s stock price ultimately reflects its earnings growth over time and that positive earnings revisions can help drive outperformance.
“We think mispriced earnings growth occurs because market participants fail to appreciate the durability of a company’s business prospects or other forms of optionality,” explains Lin. Within the AI universe, they’ve focused on companies providing the underlying infrastructure – including semiconductor manufacturers and cloud-service providers – which they view as the foundation of the broader AI ecosystem.
From this group, Lin cites fund holdings (as of May 31, 2026) in AI-focused chipmakers Nvidia (NVDA), Broadcom (AVGO) and Taiwan Semiconductor Manufacturing (TSM), as well as a relatively new position in South Korea’s SK Hynix, a global leader in high-bandwidth memory.
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In materials, the co-managers have invested in companies in the metals and mining industry, reflecting their view that hard assets will become increasingly important over the coming decade. They also believe there’s a high likelihood that favorable supply/demand dynamics in the gold market will persist for an extended period. Notable investments include Toronto-based gold miner Agnico Eagle Mines (AEM) and Franco-Nevada (FNV), with the latter particularly appealing due to the meaningful royalty revenue it derives from gold production.
Turning to the financials sector, the managers have emphasized companies they think can benefit from higher trading volumes. They also favor businesses that stand to gain from a robust deal pipeline through increased underwriting and advisory fees, as well as stronger net inflows into asset-management products.
“This has drawn us to financial companies that grow revenue faster than costs, as they leverage scale and technology to do more with fewer resources,” says Lin, who notes the fund’s positions in diversified broker-dealer and wealth management provider Morgan Stanley (MS), retail brokerage and RIA platform provider Charles Schwab (SCHW), and CBOE Global Markets (CBOE), a leading market maker in options and other derivatives products.
“The common thread among all of the fund holdings I’ve mentioned is that they are high-quality businesses with a durable stream of earnings growth that remains underappreciated by many investors,” Lin concludes.
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Chris Lin is a portfolio manager in the Equity division at Fidelity Investments.
In this role, Mr. Lin is manager of the Fidelity OTC Portfolio and the Fidelity OTC Commingled Pool. He also manages the Information Technology sleeves for several other funds.
Prior to assuming his current responsibilities, Mr. Lin served as a research analyst responsible for the coverage of large cap internet stocks and was also the Technology Equity Research Team Sector Leader. He also previously managed Fidelity Select Computers Portfolio and co-managed Fidelity Select Semiconductors Portfolio, Fidelity Advisor Semiconductors Fund, and Fidelity Stock Selector Mid Cap Fund. He also served as a research analyst and as a research associate covering biotechnology and other health care stocks. He has been in the investment management industry since joining Fidelity in 2002.
Mr. Lin earned his bachelor of arts degree, with honors, in economics from Harvard University.