Autonomous and electric vehicles

Autonomous and electric vehicles

Putting durable growth themes to work

A 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.

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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 NVDIA as autonomous vehicle production ramps
    over the coming decade.

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Putnam Growth Opportunities 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 Growth Opportunities Fund.

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