| Summary |
| The economy is progressing at a pace almost beyond belief. The fourth industrial revolution is in process of transforming our daily activities, the manufacturing sector, and the entire service industry. In fact, we have two distinctive ecospheres: the digital world and our physical one. The blur is important with the result: one global economy built on the back of bytes and another composed of bricks and mortar. |
Secular trends bring progress
The best way to understand structural trends that shape our daily lives is to take a deeper look into the companies and their activities that ultimately deliver the products and services we consume. In the sections that follow, we explore several companies whose services, in our estimation, are clear enablers in their field. From an investment point of view, these trends clearly offer above-average growth potential; however, by nature, the success of a company’s technology decisions cannot be predicted since ultimate approval/disapproval is dictated by the consumer.
Technology Disruption
Technology disruption changes occurs at high speed rates and growth comes at these companies are at a higher level too. The leading technology developments occur among the following companies.
| Company | Technology |
| Accenture Plc | Accenture is a diversified technology services company interacting with several governments, corporations, and privately held companies. ACN is, among others, advising their clients on how to deploy the most modern disruptive technologies. |
| Adobe Systems Inc | With strong recurring revenues, a solid leadership position, and superior execution, Adobe deserves a premium valuation, in our view, as the company is a key technology enabler for many digital businesses. |
| Alibaba | Alibaba is the leading e-commerce and payment platform in China. It has a rising contribution from the cloud. |
| Amazon.com Inc. | Amazon is a leading e-commerce platform and cloud infrastructure player. |
| Apple Inc. | With steady growth in its core iPhone units and solid growth in its services and wearables, Apple offers a good reward supported by its strong cash distribution. |
| ASML | ASML is a leading semiconductor equipment manufacturer exposed to the critical lithography segment |
| Cisco Systems Inc. | Initially, Cisco was slow to react to the challenge of software-defined networking (SDN, a technology that sought to disrupt networking). However, the combination of an SDN market that was slower to develop than expected and Cisco’s large incumbency has allowed it to reposition its strategy and product portfolio. We note that COVID-19 presents increased near-term uncertainty. |
| Facebook Inc. | Facebook is a leading technology leader in social networking with multiple platforms like Instagram, WhatsApp, Messenger, and its core Facebook app. |
| Google (Alphabet) | Google remains the preeminent franchise in internet search and advertising. Google has interesting options in areas such as cloud computing, autonomous driving, and artificial intelligence. |
| Infosys Ltd | Infosys is a leading IT services vendor with a growing presence in digital services. |
| Intel Corp | Intel is a leading semiconductor company exposed to data centers and PCs. |
| Microsoft Corp | Microsoft is a leading software provider across multiple segments, such as operating systems, office productivity tools, and cloud-related software. |
| Netflix Inc. | Netflix, Inc., is a provider of on-demand, commercial-free internet streaming media available to viewers globally ex-China. Streaming is part of the future key technologies for sport and entertainment events, plus conferencing. |
| NVIDA Corporation | The market is underestimating NVIDIA’s long-term growth opportunities; higher demand for end-user video apps and data center related activities is translating into an above-average growth opportunity. |
| PayPal Holdings Inc | PayPal is a leading payment wallet provider. We believe it has strong market share upside potential. |
| Qualcomm Inc. | Qualcomm is leading the competition in the field of emerging technologies like 5G and Internet of Things. This drives strong near-term growth; key catalysts include the 5G upgrade cycle. |
| Salesforce | Salesforce.com is a leading cloud software vendor in customer resource management. It has solid margin upside potential due to scale. |
| Samsung Electronics | Samsung Electronics is a leading memory semiconductor company. It also has a leading presence in smartphones and consumer electronics. |
| SAP AG | SAP is a leading enterprise resource planning software vendor, with increasing exposure to cloud software. |
| Taiwan Semiconductor Manufacturing Co Ltd | TSMC is a leading semiconductor contract manufacturer. It has significant first-mover advantages in key technologies. |
| TAL Education Group Sponsored ADR Class A | TAL Education is the leading online education company in China. It also has a strong offline presence. |
| Visa Inc. | Visa is well-positioned to capitalize on the ongoing secular shift in payments from checks and cash to plastic and digital. Visa’s volume growth should also benefit from expanding merchant adoption, growing mobile usage, and greater prepaid and commercial activity. |