Organizations are increasingly moving beyond basic chatbots in favor of autonomous systems that can execute more-complex tasks from start to finish, intensifying the need for greater computing power, memory and networking capacity, says Fidelity Portfolio Manager Sonu Kalra.
“Agentic AI, which runs on semiconductors, is a powerful technology that I believe could follow the trajectory of the internet, evolving from a novel technology used by a few to an essential tool used by virtually everyone,” explains Kalra, who manages Fidelity® Blue Chip Growth Fund (FBGRX). “And with recent data suggesting the market for agentic AI could reach nearly $200 billion by 2034, many chipmakers appear well-positioned to ride the wave.”
In leading the large-cap growth strategy, Kalra favors companies with competitive advantages, including high barriers to entry, pricing power and strong management teams, sustainable business models and above-average long-term earnings growth potential. This has historically led him to invest in sectors characterized by innovation, such as information technology, which represented about 57% of the fund’s assets as of September 30, 2026.
The primary appeal of agentic AI, according to Kalra, is its ability to handle tasks that require numerous steps, decisions and actions across a wide range of areas, including business operations, sales and marketing, manufacturing, logistics, software development, health care, finance, personal productivity and more.
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“Instead of simply answering questions, these systems can autonomously plan and execute tasks, often using multiple agents that work together around the clock,” he explains.
Looking ahead, Kalra is confident that increased adoption and the continued evolution of agentic AI will drive a surge in demand for chips and chip-related companies. He notes that agentic AI requires significantly more compute, memory and networking capacity than traditional AI, further extending the exponential infrastructure build-out that has already provided substantial benefits the semiconductor industry.
Seeking to capitalize on the trend, he’s positioned the fund with sizable investments in AI-focused semiconductor companies, led by Nvidia (NVDA), by far its largest holding at the end of September. Micron (MU), a maker of memory chips, and Taiwan Semiconductor Manufacturing (TSM), a leading chip foundry, were notable holdings as well.
Given recent extreme price moves among certain semiconductor stocks, Kalra has been balancing his strong conviction in their long-term potential with a disciplined approach to position sizing and valuation.
“No doubt, I see a bright future for agentic AI, and I believe each of these companies stand to benefit from its growth in the years ahead,” he concludes.
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Sonu Kalra is a portfolio manager in the Equity division at Fidelity Investments.
In this role, Mr. Kalra is lead portfolio manager of Fidelity Blue Chip Growth Fund, Fidelity Series Blue Chip Growth Fund, Blue Chip Growth ETF, and Fidelity Blue Chip Growth Commingled Pool.
Prior to assuming his current responsibilities, Mr. Kalra managed a variety of other funds, including Fidelity OTC Portfolio, Fidelity OTC Commingled Pool, Fidelity Select Computers Portfolio, Fidelity Select Technology Portfolio, Fidelity Advisor Technology Fund, and Fidelity VIP Technology Portfolio. Mr. Kalra also served as sector leader of the technology team and managed Fidelity Select Networking & Infrastructure Portfolio. He joined Fidelity as an analyst in 1998 covering the radio, television, and entertainment industries, and followed various areas within the technology sector including hardware, software, networking, and internet stocks
Before joining Fidelity, Mr. Kalra completed the Financial Management Program at GE Capital in Stamford, Connecticut. He has been in the financial industry since 1993.
Mr. Kalra earned his bachelor of science degree in finance from Pennsylvania State University and his master of business administration degree from The Wharton School of the University of Pennsylvania.