Three themes driving total available market (TAM) and stock performance in 2017 include artificial intelligence propelling Apple’s iPhone, cloud computing and virtual reality.
We see three themes driving fundamental and stock performance in 2017. First, we expect accelerated iPhone upgrades on the back of OLED display, camera, and battery improvements which benefits Apple, Alps, Goertek, Largan, Luxshare, Samsung, Sony, TDK. Second, cloud adoption is inflecting higher and we see whitebox maker Quanta, and companies that can move up-the-stack, like IBM, as beneficiaries.
Huberty also takes a crack at what comes after mobile technology, noting that “every 10 years a new computing cycle emerges that is 10 times the size of prior cycle,” noting that the mobile devices industry is “measured in billions of units, up from millions of installed units during the mainframe cycle in the 1960s.”
“To remain on the historical path, the next computing cycle must drive tens of billions of units, well above global population of 7 billion.”
With that in mind, she offers her prediction of what’s next:
Our view is that sensors tied to both people and objects – automobiles, industrial and medical equipment, retail inventory, homes, component parts, etc. – will create a computing network allowing for new data sources and insights. In turn, long discussed trends like Autonomous cars, Artificial Intelligence, and Augmented/Virtual Reality will come to fruition […] We believe investments are concentrated around four key themes: 1) Virtual Reality/Augmented Reality, 2) Internet of Things (IoT), 3) AI & Machine Learning, and 4) Autonomous vehicles. Together, these markets are forecasted to drive $13T of spend and forecasts for some markets, such as VR/AR, appear conservative relative to longer- term potential for industry-specific use cases.
Read the source article at Barrons.com.