Companies we’re backing
We believe chips are a strong secular growth theme, so the important question for asset allocators is how they should approach investing in this long-term growth story. In the past, we included chips within the ‘automation’ theme in our global portfolio. Now though, they have been elevated to a standalone theme.
Nvidia is currently a small holding in the Artemis Global Select Fund. Over a decade ago the company grasped the potential of parallel processing and invested accordingly – stealing a substantial march on its rivals.
The company first introduced GPUs back in the 1990s and has used this expertise to provide the technology for datacentres and to power AI models, which has driven the eye-watering surge in Nvidia’s share price.
However, we also hold Taiwan Semiconductor Manufacturing Company which dominates the production of the world’s cutting edge semiconductors. TSMC’s primary production facilities are in Taiwan, which poses clear risks due to tensions with China, so we welcome the fact the company is building facilities in the US and elsewhere. In addition, we own chip-makers Samsung Electronics and Micron and we are also invested in companies such as ASML and LAM Research, which make chip-manufacturing equipment.
We take an active approach to managing our long-term positions, using the volatility caused by the cyclical nature of the sector to identify attractive opportunities to buy and sell, while maintaining our focus on companies that have strong market positions, market-leading technology and excellent long-term growth prospects. This necessitates continual research and a close eye on markets. However, we believe it is an approach that can help the rapidly growing global demand for chips make a strong contribution in a balanced portfolio.
Alex Stanić is lead manager of the Artemis Global Select Fund.
1https://www.cfr.org/blog/us-investment-semiconductor-manufacturing-building-talent-pipeline
2Who ate all the ‘chips’? | Credit Suisse Asset Management (credit-suisse.com)
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This is a marketing communication. Before making any final investment decisions, and to understand the investment risks involved, refer to the fund prospectus, available in English, and KIID/KID, available in English and in your local language depending on local country registration, from www.artemisfunds.com or www.fundinfo.com. CAPITAL AT RISK. All financial investments involve taking risk and the value of your investment may go down as well as up. This means your investment is not guaranteed and you may not get back as much as you put in. Any income from the investment is also likely to vary and cannot be guaranteed.
