3 Funds to Buy on Solid Surge in Semiconductor Sales in Q2

The semiconductor industry has made a strong comeback in recent months, fueled by rising sales and growing enthusiasm around artificial intelligence (AI), which has prompted major tech companies to ramp up their investments in the sector.After a sluggish 2023, robust demand across various industries has significantly boosted chipmakers' revenues, helping drive overall market growth and contributing heavily to the tech rally seen both last year and this year.In light of these developments, investing in mutual funds that focus on semiconductors — such as Fidelity Select Semiconductors Portfolio FSELX, Janus Henderson Global Technology and Innovation Fund JNGTX and DWS Science and Technology A KTCAX — could be a strategic investment move.Semiconductor Sales Are on the RiseThe Semiconductor Industry Association (SIA) reported earlier this week that global semiconductor sales totaled $179.7 billion in Q2 of 2025 — a solid 7.8% jump from the previous quarter. Semiconductor sales in June totaled $59.9 billion, up 19.6% from the year-ago total of $50.1 billion, and 1.5% higher than in May.SIA President and CEO John Neuffer said, “Global semiconductor sales remained strong in May, edging above the previous month’s total and remaining well ahead of sales from the same month last year.”Earlier this year, chip sales briefly took a hit amid concerns over the competitiveness of U.S. tech following the launch of DeepSeek, a low-cost AI platform from China. However, analysts quickly dismissed these concerns, arguing that DeepSeek was overestimated and posed no significant threat to U.S. firms.The rebound follows an exceptional 2024, when global semiconductor revenues reached $627.6 billion — a 19.1% rise from $526.8 billion in 2023. In Q1 2025 alone, the industry brought in $167.7 billion, up 18.8% from the same period last year. Much of this growth came from the soaring demand for data center chips and memory products. With AI investments continuing to grow, experts expect the semiconductor industry’s double-digit growth to persist throughout 2025.3 Best ChoicesWe 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).Fidelity Select Semiconductors Portfolio fund seeks capital appreciation. FSELX normally invests at least 80% of its assets in common stocks of companies principally engaged in the design, manufacture, or sale of electronic components (semiconductors, connectors, printed circuit boards, and other components); equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors.Fidelity Select Semiconductors Portfolio fund has a track record of positive total returns for over 10 years. Specifically, FSELX’s returns over the three and five-year benchmarks are 44.8% and 32.9%, respectively. The annual expense ratio of 0.62% is lower than the category average. FSELX 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.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 record of positive total returns for over 10 years. Specifically, JNGTX’s returns over the three and five-year benchmarks are 32.4% and 17.1%, respectively. The annual expense ratio of 0.83% is lower than the category average of 0.99%. JNGTX 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 its net assets in common stocks of U.S. companies in the technology sector.DWS Science and Technology A fund has a track record of positive total returns for over 10 years.  Specifically, KTCAX’s returns over the three and five-year benchmarks are 30.5% and 18.1%, respectively. DWS Science and Technology A fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.88, which is lower than the category average of 1.03%.To see how this fund performed compared to its category and other #1 or 2 Ranked Mutual Funds, please click here.Want key mutual fund info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FSELX): Fund Analysis Report Get Your Free (KTCAX): Fund Analysis Report Get Your Free (JNGTX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks