Portfolio Manager Insights

Leaning into strong demand for AI and industrial metals

Fidelity’s Dan Kelley is seeking to capitalize on favorable growth trends in artificial intelligence (AI) and industrial metals, believing demand for both is likely to remain strong despite elevated inflation and interest rates.

By: Daniel Kelley
Updated: 10/12/2026
  • In the current market environment, Fidelity Portfolio Manager Dan Kelley is investing in companies that he believes are well-positioned amid sustained demand tied to the global expansion of AI and continued need for industrial metals.
  • “Elevated inflation and interest rates mean growth companies need to deliver stronger earnings growth, as these conditions tend to favor value-oriented stocks,” says Kelley, who co-manages Fidelity Advisor® Equity Growth Fund with Chris Lin.” We believe owning businesses that are likely to continue experiencing strong demand is critical.”
  • In leading the growth-oriented domestic equity strategy, Kelley says he and Lin look for companies that they believe are mispriced relative to their long-term growth potential. They favor businesses capable of generating earnings growth meaningfully above Wall Street consensus expectations, while also trading at valuations they consider reasonable based on Fidelity’s assessment of future earnings potential. 
  • As a result, the fund owns companies expected to benefit from the continued build-out of AI infrastructure. It also invests in economically sensitive sectors that have been supported by strong global demand for strategic resources, including industrial metals. 
  • As of August 31, about half the portfolio was allocated to the information technology sector, including sizable stakes in semiconductor companies and producers of computer memory and data-storage products. For example, Kelley cites Taiwan Semiconductor Manufacturing, the world’s largest chipmaker. “The company continues to grow, fueled by strong demand for its AI processors,” he says. 
  • Turning to industrial metals, the co-managers are constructive on the group given what they see as growing needs from governments and businesses globally. Kelley believes prices for industrial metals do not fully reflect their long-term demand outlook. “As a result, we believe the stocks of many companies that mine and produce industrial metals are mispriced relative to the growth potential of their revenues and earnings,” he says.
  • Recent investments in the materials sector included Luxembourg-based steelmaker ArcelorMittal, as well as Alcoa, one of the world’s largest producers of aluminum and its raw materials. The fund also leaned into copper-mining companies, including Lundin Mining, which operates copper, gold and silver mining projects primarily in South America.
  • “We believe these and other producers of raw materials could benefit from elevated inflation,” says Kelley. “In addition, we’re seeing growing demand for materials across a range of industries, including defense, electrification and supply-chain infrastructure. Against this backdrop, many companies across these segments may need to invest additional capital to expand supplies.”
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