Blue Whale Growth Fund Builds AI Infrastructure Portfolio With Applied Materials, SK Hynix in 2025

Stephen Yiu, manager of the Blue Whale Growth Fund with approximately $4.5 billion in assets under management, disclosed the fund's strategy to capitalize on artificial intelligence capital expenditure by investing in semiconductor supply chain companies. The fund's top ten holdings include Applied Materials (AMAT), BE Semiconductor Industries, SK Hynix, Lam Research (LRCX), Lumentum (LITE), Nvidia (NVDA), and Sandisk (SNDK).

The fund achieved an annualized after-fee return of approximately 19% since its 2017 inception, outperforming the MSCI World Index's 12.4% return over the same period. Key recent positions include purchasing SK Hynix in early 2025, which has surged 685% over the past year, and holding Nvidia since 2021 despite market volatility. Yiu maintains that Nvidia's current estimated price-to-earnings ratio of 22 times remains undervalued relative to growth trajectory, while the fund holds only Alphabet among major cloud service providers.