Fidelity Manager Favors Japan's Small AI-Linked Firms

Dale Nicholls, manager of the $944 million Fidelity Funds Pacific Fund, has reinforced his preference for smaller AI-linked Japanese companies after Japanese shares hit record highs early in 2026; the fund holds about 23% in Japanese stocks and outperformed 96% of peers over the past year, Bloomberg data show. He cites undervalued suppliers like Fujibo — up 80% year-on-year with roughly 20x P/E — as having further upside.