Issue date: 2019-09-10
Franklin Templeton Investments
In 2019, as corporates seek to engage with their customers in a more service-oriented and data-centric manner, we see significant investment opportunities in the leading 'digital transformation' platform companies, as well as technology vendors that enable their customers to digitally adapt and transform. We believe digital transformation should drive strong revenue and earnings growth across the technology sector for many years to come.
Some examples of industries currently driving noteworthy digital initiatives include:
Artificial Intelligence (AI) or more specifically machine learning, is the ability to progressively improve performance on a specific task, or “learn” with data, without explicitly being programmed. It works by applying an algorithm to data to discover patterns and generate insights. Those insights refine the algorithm to produce increasingly better insights.
Several developments have contributed to AI’s leap forward, in particular the huge volumes of data that are now available thanks to the internet, social media and sensors associated with the Internet of Things.
AI is already in use in many applications we use on a daily basis. But we believe the opportunity that AI present is much bigger.
Individual Applications for AI:
Overall, we remain positive on the tech sector despite some potential headwinds.
However, there are certain risks that investors should be cautious about:
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Franklin Templeton Investments (Asia) Limited is the issuer of this document. The document, which is for informational purposes only, sets forth our views as of the date published. The stock provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular security.
The stock identified is not necessary indicative of a portfolio's holding at any one time. The underlying assumptions and these views are subject to change without notice. There is no guarantee that any forecasts expressed will be realized. Franklin Templeton Investments accepts no liability whatsoever for any direct or indirect consequential loss arising from use of this report or any information, opinion or estimate herein. This document has not been reviewed by the Securities and Futures Commission of Hong Kong.