Key Takeaways
- Nvidia stock is up nearly 50% in 2025, as booming AI demand has sent its market cap over $5 trillion.
- Fidelity fund strategies managing over $200 billion in assets have gone in big on the stock.
- The fund with the largest weighting to the stock is the Matthew 25 Fund, followed by iShares ESG Advanced MSCI USA ETF.
Nvidia’s NVDA huge rally, which has made it the first $5 trillion company in history, has provided a big boost for funds with heavy weightings in the semiconductor giant. That has especially been the case for a handful of top-performing Fidelity Investments funds, along with the $334 million Matthew 25 Fund MXXVX and the iShares ESG Advanced MSCI USA ETF USXF, each of which have over 20% weightings of Nvidia in their portfolios.
Two Fidelity funds with over $200 billion between them have large Nvidia weightings, exemplified by the $20.6 billion Fidelity Series Growth Company Fund FCGSX and the $14.6 billion Fidelity Series Blue Chip Growth Fund FSBDX, each of which has Nvidia as its largest holding.
Shares Skyrocket on AI Boom
The $5 trillion milestone came on the heels of Nvidia’s GPU Technology Conference in Washington, D.C., where the firm made multiple big announcements. It revealed it had ample order backlogs for its Blackwell and Rubin chips. “We’re pleasantly surprised by this disclosure,” says Morningstar analyst Brian Colello. “We think it implies about $300 billion of data center revenue to be earned in calendar 2026 [fiscal 2027], above FactSet estimates.”
The firm also revealed deals with Oracle ORCL and Nokia NOK, as well as with the Trump administration to sell chips to China in exchange for a cut of the sales. All this took place amidst the backdrop of surging AI spending from major tech companies.
Shares of the semiconductor designer are up 49.7% so far in 2025, compared with the 17.9% rise in the Morningstar US Market Index. Nvidia stock is trading at just over $200 a share. Morningstar has raised its fair value estimate for the three-star rated stock to $225 per share.
Which Funds Have the Biggest Allocations to Nvidia?
A screen of large-cap US stock funds, excluding sector funds and those with fewer than $100 million in assets, reveals the names with the largest holdings in the chip giant. This data reflects the most recently reported positions, and funds may have since reduced, eliminated, or added Nvidia stock. For instances in which more than one fund followed the same strategy, only the fund with the lowest expense ratio is listed.
Of the funds with the 10 largest weightings to Nvidia, eight are large-cap growth funds, while two are large-blend funds. Nvidia has a 14% weighting in the benchmark for large-cap growth funds, the Morningstar Large-Mid Cap Broad Growth Index—the highest of any stock. Nvidia similarly tops the list of weightings for the large-blend benchmark, the Morningstar US Large-Mid Cap Index, which has a 7.5% allocation to the stock.
The Matthew 25 Fund tops the list with a 22.8% weighting to Nvidia, its largest holding. The fund holds 12-30 securities, with a 25% maximum weighting for any stock. Nvidia stock accounts for 10.2 points of the fund’s 16.2% year-to-date return, far more than the second-place MercadoLibre MELI, which contributed 2.6 points. That puts the fund in the 56th percentile of the large-cap blend category.
The $1.2 billion iShares ESG Advanced MSCI USA ETF has the second-largest weighting in Nvidia of all the funds under review. It has a 20.6% allocation to Nvidia, its largest holding, and has returned 20.3% in the year to date, putting it in the 44th percentile of the large-cap growth category. Nvidia contributed 8.5 points of that return, the most of any of the fund’s holdings. The iShares fund tracks an index of large-to-mid-cap US stocks which score highly on ESG metrics, so it screens out firms with a large portion of revenue from businesses such as tobacco, for-profit prisons, nuclear weapons, and alcohol.
Next is the $107 million Alger Responsible Investing Fund ALGZX, an actively managed fund that also looks to invest in stocks that score well on ESG metrics. It has a 16.1% weighting to Nvidia, also its largest holding.
Fidelity Funds Bet Big on Nvidia
Among the top 10 holders of Nvidia, the largest is the $20.6 billion Fidelity Series Growth Company Fund, which has a 17.7% weighting in the stock, its largest holding. Fidelity mirrors its strategy across multiple funds, giving it a total holding of over $121 billion in the stock. Morningstar principal Robby Greengold describes the Fidelity strategy as “powered by Nvidia.”
The Fidelity Series Growth Company Fund is up 26.4% in the year to date, putting it in the top decile of the large-cap growth category. Nvidia stock contributed 7.9 points of that return, by far the biggest contributor. The fund’s longtime portfolio manager, Steve Wymer, has been a fan of the stock for years, having first added the stock in 2013.
Fidelity is also betting big on Nvidia with another strategy. The $14.6 billion Fidelity Series Blue Chip Growth Fund has a 15.9% weighting—also its largest holding. Funds following that strategy total over $108 billion in assets. The fund has returned 21.1% this year, of which 7 points are attributable to Nvidia. “A consistent overweighting in semiconductors has helped earn the fund one of the large-growth Morningstar Category’s best results over the past decade,” says Greengold. He says the strategy is “betting big on artificial intelligence.”