Putting durable growth themes to work
A thematic approach is a distinctive feature of Large Cap Growth Fund. The team analyzes global trends, as well as problems and potential solutions, to identify which themes could drive sustained growth for businesses over a multiyear time horizon.
THEME: Artificial intelligence
Generative AI is advancing at a remarkable pace and leverages massive computing power. Immediate AI beneficiaries include semiconductor and cloud service companies, but there is meaningful potential for future applications across many other sectors.
AI is exciting because many of the potential winners (and losers) fit squarely in the large-cap growth investable universe.
STOCK: NVIDIA (NVDA)
We believe NVIDIA is set to benefit from the huge compute capacity required to enable generative AI workloads. As of today, it is the only supplier of the graphic processing units (GPUs) that are needed to run generative AI.
- NVIDIA was already generating $15 billion — about 50% of its total revenues — from AI demand, and we believe generative AI will act as an additional leg of the growth stool.
- One key advantage is the strength of NVIDIA’s parallel processors, which will be used for both model training and inference.
- NVIDIA also has a best-in-class reputation in the gaming community and is the seller for 8 of every 10 discrete gaming GPU purchases globally.
Putnam Large Cap Growth Fund
See how investing in companies with durable long-term growth prospects, high and/or improving capital returns, and a strong ownership culture drives 5-star performance as of 5/31/2020.
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Learn more about the distinctive thematic approach and how the team analyzes global trends to identify which themes could drive sustained growth for Putnam Large Cap Growth Fund.
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