This 40%-a-Year Fund Manager Says Semis Are STILL the Place to Be After a 100% Run

Dom Rizzo's T. Rowe Price Global Technology Fund has delivered 40% annualized returns over 3.5 years, significantly outperforming its benchmark by over 500 basis points. The fund's outperformance reflects a substantial overweight to semiconductor equities, positioning the strategy to capture continued strength in chip stocks despite a 100% rally that has already occurred in the space.

The manager's conviction that semiconductors remain attractive after doubling suggests market participants still see structural tailwinds supporting valuations in the sector. This perspective is noteworthy because it reflects professional confidence that semiconductor fundamentals—whether driven by AI infrastructure buildout, data center demand, or cyclical recovery—remain intact and under-appreciated relative to current prices.

NVDA, AMD, and AVGO represent the core semiconductor exposure likely driving this fund's outperformance. The sustained bullish stance on chip equities indicates belief that margin expansion, pricing power, and demand durability justify continued allocation, even after substantial price appreciation. INTC's positioning remains peripheral given the fund's focus on leaders with proven competitive advantages.

Sector implication: The technology sector's upside potential remains indexed to semiconductor performance. Funds with significant overweights to chip stocks are betting that growth narratives—particularly AI and cloud infrastructure—will continue supporting higher multiples and earnings expansion well beyond current consensus estimates.