Through Covid-19, people are spending more time online not just to work and learn but also to shop, and entertain themselves. Our indicative Theme of Internet Infrastructure Stocks which includes a diverse set of companies that sell semiconductor products, networking equipment, and related products that underpin the Internet should stand to benefit from the growing requirement for connectivity and computing power.
The theme remained roughly flat over the last 5 trading days, on an equally weighted basis, compared to the S&P 500 which declined by over 3%. However, the theme is up by about 11% year-to-date compared to the S&P 500 which has gained about 3% over the same period. Nvidia, up 106% year-to-date, is the primary driver of the theme’s return this year.