Legendary Investor Peter Lynch Shuns AI Stocks Despite Sector Boom

As of November 17, 2025, renowned investor Peter Lynch has disclosed that he does not hold any artificial intelligence (AI) stocks in his portfolio, despite the sector's recent surge. Lynch, who is well-known for his successful 13-year stint at the helm of the Fidelity Magellan Fund during the 1980s, where he achieved an average annual return of 29.2%, has been watching the AI boom from the sidelines.

In a recent podcast appearance, Lynch confessed that he has "zero AI stocks" and that he "literally couldn't pronounce Nvidia until about eight months ago." The veteran investor, who is known for his investment philosophy of thoroughly understanding the companies he invests in, as outlined in his book "One Up on Wall Street," has refrained from participating in the AI investment frenzy.

When questioned about whether investors have over-pursued the AI trade, Lynch admitted that he has "no idea." He emphasized the importance of comprehending the companies one invests in, a concept he strongly advocates. Lynch also described himself as the "lowest tech guy ever," stating that he "can't do anything with computers" and prefers to use "yellow pads."

Despite the warnings from executives at companies like Walmart and Accenture about AI's potential to significantly transform their workforces, Lynch offered reassurance to employees, stating, "It's a great country. We're creative." His stance on AI stocks is noteworthy given his successful track record as an investor, and it could serve as a reminder to investors to not get carried away by the hype around a sector and to invest based on a deep understanding of the company and the industry.