Artificial intelligence

Artificial intelligence

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.
About our thematic approach Fund details

growth themes

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.

See complete holdings


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.

Morningstar performance


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.
Fund details Launch fund comparison


The Morningstar Rating™ for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36 to 59 months of total returns, 60% five-year rating/40% three-year rating for 60 to 119 months of total returns, and 50% ten-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the ten-year overall star rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.

More in: Equity