The Fund’s Largest Relative Detractor: Unowned Advanced Micro Devices (AMD)

The Fund’s Largest Relative Detractor: Unowned Advanced Micro Devices (AMD) Soumya Eswaran Tue, September 15, 2026 at 5:26 PM GMT+2 3 min read AMD ^GSPC Fidelity Investments, an investment management company, recently released its second-quarter 2026 investor letter for the "Fidelity Dividend Growth Fund". The letter can be downloaded here . The Fidelity Dividend Growth Fund is a diversified large-cap equity strategy focused on capital appreciation through investments in large- and mid-cap stocks with strong dividend growth prospects.

The fund returned 17. 05% in the quarter, outperforming the S&P 500 Index, which gained 15. 20%.

U. S. stocks experienced significant gains in Q2, driven by increased spending on artificial intelligence.

Technology stocks gained 31. 79%, mainly driven by semiconductor companies, while the index faced a slight decline in June as investors considered the sustainability of AI-related profits amidst rising interest rates. Despite recent turbulence from the Middle East conflict, the fund remains optimistic about key investment themes, particularly in artificial intelligence.

Also, check the fund's top five holdings to see its best picks in 2026. In its second-quarter 2026 investor letter, Fidelity Dividend Growth Fund highlighted Advanced Micro Devices, Inc. (NASDAQ: AMD ).

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading semiconductor company that designs and manufactures AI accelerators, microprocessors, and graphics processing units. On September 14, 2026, Advanced Micro Devices, Inc.

(NASDAQ:AMD) closed at $493. 41 per share, reflecting a market capitalization of $805. 61 billion.

Over the past month, Advanced Micro Devices, Inc. (NASDAQ:AMD) returned 7. 72%, but its shares are up 226.

08% over the past year. Fidelity Dividend Growth Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2026 investor letter: "On the other hand, security selection in industrials and materials meaningfully detracted for the quarter, along with a large overweight in the lagging energy sector.

The five largest relative detractors were all strong-performing benchmark components in the technology sector that the fund didn't own during the quarter. For example, Advanced Micro Devices, Inc. (NASDAQ:AMD) (+186%) was the largest relative detractor for the period.

AMD competes in many markets with Nvidia, which we preferred and has outperformed AMD in many recent quarters. Also, AMD pays no dividend, whereas Nvidia does. The past three months, though, AMD had by far the better return, aided by better-than-expected earnings for Q1 that were driven by accelerating demand for AI infrastructure.

" Story Continues Is Advanced Micro Devices (AMD) One of the Top 10 Dividend Stocks to Buy According to Reddit? Advanced Micro Devices, Inc. (NASDAQ: AMD ) ranks 20 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 .

As per our database, 164 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ: AMD ) at the end of the second quarter which was 134 in the previous quarter. While we acknowledge the potential of Advanced Micro Devices, Inc.

(NASDAQ:AMD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock . In another article , we discussed Advanced Micro Devices, Inc.

(NASDAQ:AMD) and shared American Century Investments Focused Dynamic Growth Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years .

This article is originally published at Insider Monkey .