Artificial intelligence boom

Many firms claim to be direct beneficiaries of AI advancements, but we are in the early chapters of this book and the competitive landscape is just now coming into view, claims Fidelity’s Jean Park.

“This is where Fidelity’s research capabilities really shine,” says Park, portfolio manager of Fidelity® Fund (FFIDX). “We are able to assess this trend from many different points of view, speaking to both public and private companies, as well as researchers and developers directly within the AI realm.”

As an investor, Park relies on her belief that stocks of high-quality companies exhibiting persistent growth and positive free cash flow, when purchased at reasonable prices, should outperform the market over time.

To capitalize, Jean has invested the fund in several companies that she believes have the potential to benefit as AI continues to grow.

For example, Cadence Design Systems (CDNA) develops software that is integral to the development of increasingly intricate and complex semiconductors that power laptops, mobile phones, and autos, while also enabling AI advancement, Park points out.

She also highlights Synopsys (SNPS), another software provider that helps facilitate AI development.

Turning to chipmakers, Nvidia (NVDA) was one of the portfolio’s top positions, as of October 31. “The company dominates the market for advanced graphics chips that are the lifeblood of new generative AI systems, including the viral chatbot ChatGPT,” says Park.

She views Salesforce (CRM) as a potential winner, given that the firm has been infusing generative AI throughout its client relationship management platform, to enhance customers’ experiences across all its applications and workflows.

Park feels these new AI-driven capabilities have differentiated Salesforce’s products and services, giving the company opportunities to drive meaningful profitability over time.

Each of the aforementioned businesses have generated solid free cash flow, according to Park, noting a key facet of her investment approach.

“As with any emerging trend, determining the winners early on can make a big difference,” Park concludes. “Moreover, with the benefit of Fidelity’s deep research team, I feel I have an advantage in assessing companies’ ability to harness the growth of AI to drive revenue and cash flow.”

For specific fund information, including full holdings, please click on the fund trading symbol above.

Jean Park
Jean Park
Portfolio Manager

Jean Park is a portfolio manager in the Equity division at Fidelity Investments.

In this role, Ms. Park manages Fidelity Growth Strategies Fund and the Fidelity Fund. She is also co-manager of VIP Contrafund.

Prior to assuming her current responsibilities, Ms. Park managed Select Leisure Portfolio and served as an equity research analyst on the Consumer team and on the Financials team

Before joining Fidelity in 2006, Ms. Park was an associate and an analyst at Goldman Sachs Asset Management and an intern at JP Morgan. She has been in the financial industry since 2001.

Ms. Park earned her bachelor of arts degree, magna cum laude, in economics from Harvard University and her master of business administration degree, with honors, in finance from The Wharton School of the University of Pennsylvania. She is also a CFA® charterholder and a member of CFA Society Boston.

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