Putting durable growth themes to workA thematic approach is a distinctive feature of Putnam Growth Opportunities 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 multi-year time horizon.
THEME: Autonomous and electric vehiclesElectric vehicle penetration is less than 3% today, and self-driving vehicles are only in the testing phase. Still, the revenue opportunity for semiconductor companies that supply these end markets is already meaningful and growing at above-market rates.
Beyond autonomous driving, semiconductors are used for a range of features in cars, such as cameras, sensors, and internet connections. The rollout of 5G wireless will increase semiconductor demand for automobiles.
STOCK: NVIDIA (NVDA)NVIDIA produces graphics processing units (GPUs) that are used for gaming and entertainment as well as artificial intelligence.
- The company maintains dominant market share (over 60%) in GPUs, which are central to the artificial intelligence architecture that enables autonomous driving.
- While small today, this end market should become material to NVDIA as autonomous vehicle production ramps over the coming decade.
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