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 multi-year time horizon.
THEME: Autonomous and electric vehicles
Electric 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 NVIDIA as autonomous vehicle production ramps over the coming decade.
- NVIDIA has decades of experience providing hardware and software for automakers and is working to help make autonomous driving a reality for its clients.
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.
Get to know Putnam Large Cap Growth Fund
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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