Baron Capital Global Advantage Equity—Z/USD

NVIDIA Corporation (NVDA) sells semiconductors, systems, and software for accelerated computing, gaming, and generative AI.
Computing demand has been doubling every one to two years, driven by electrification, digitization, and recent advancements in AI, yet supply growth has decelerated dramatically due to the slowdown in Moore's law. NVIDIA’s accelerated computing architecture enables continued growth in computing capacity through parallelization. We are at the tipping point of a new era in computing, with NVIDIA at its epicenter as generative AI adoption grows. With leading market share in gaming, data centers, and autonomous machines, we think NVIDIA is well positioned for long-term growth.

Taiwan Semiconductor Manufacturing Company Limited (TSM), known as TSMC, is the world's largest independent semiconductor foundry, manufacturing chips on behalf of other companies.
TSMC is the dominant force in leading-edge semiconductor foundry manufacturing, as it benefits from economies of scale and a superior cost structure. The company's successful track record of deploying new technology faster than competitors helps it maintain market share and pricing power. We believe TSMC’s investments in advanced nodes will strengthen its market leadership and support long-term profitability.

MercadoLibre, Inc. (MELI) is the largest e-commerce company in Latin America. The company operates the MercadoLibre e-commerce marketplace, the Mercado Pago fintech platform, and the Mercado Envios suite of shipping solutions for sellers on its platform.
MercadoLibre benefits from the emergence of two secular trends: e-commerce and digital payments. The company has a significant first-mover advantage and is investing aggressively in logistics to widen its competitive moat. Latin America is a predominantly cash-based economy with e-commerce penetration under 20%, and MercadoLibre has an attractive, asset-light marketplace business model. We believe the company's logistics network is a key competitive advantage, and we see a significant opportunity in the growth of its fintech offerings.

Amazon.com, Inc. (AMZN) is an e-commerce pioneer, innovator, and market share leader with a relentless focus on providing value and convenience to its customers. Amazon also operates the industry-leading cloud infrastructure business Amazon Web Services (AWS). 
Amazon's market share of U.S. online retail sales is around 40%, while its share of global retail sales is less than 5%. Amazon has many avenues for revenue growth, including consumer staples, international expansion, grocery, digital media offerings, private label, pharmacy and health care services, advertising, and a better shopping experience powered by generative AI. Amazon also represents an opportunity to invest in the secular growth of cloud computing and the adoption of enterprise AI through AWS — a large, fast-growing, and margin-accretive part of the business. 

Shopify Inc. (SHOP) is a cloud-based software provider offering an operating system for multi-channel commerce. The company serves over 2 million merchants that processed $350 billion of gross merchandise value (GMV) last year. Shopify is the second-largest e-commerce player in the U.S., as measured by GMV.
Shopify offers a scalable, end-to-end commerce platform that serves merchants of all sizes, including offline, international, and B2B businesses. Its aggregate scale, innovation, and ecosystem of partners allow merchants to run every part of their business on the Shopify platform. The company's access to real-time, transaction-level data across its merchant base strengthens its competitive position, allowing it to share the benefits of scale directly with its merchants. With less than 2% share of $25 trillion in global commerce (ex China), it has a long runway for growth.

ASML Holding N.V. (ASML) designs and manufactures semiconductor production equipment. It is the dominant provider of photolithography equipment, where light sources are used to photo-reactively create patterns on wafers that ultimately become printed circuits.
ASML is the clear leader in the photolithography space, with its equipment used by nearly all major semiconductor manufacturers. The company holds over 80% market share in deep ultraviolet photolithography and 100% market share in extreme ultraviolet systems—critical tools that enable continued improvement in chip performance, efficiency, and cost as transitor sizes shrink. In our view, ASML's next-generation high-NA EUV will extend its technological advantage and positions the company for continued lithography dominance at the leading edge of semiconductor production.

Tesla, Inc. (TSLA) manufactures electric vehicles including sedans, SUVs/CUVs, a pickup truck, and a semi-truck. The company is also ramping up internal battery cell production, energy solutions, robotics offerings such as full self-driving and humanoids, and renewable energy generation and storage solutions.
We expect Tesla to continue growing its automotive business as it benefits from the secular adoption of electric vehicles, vertical integration, technological innovation, and cost advantages. The company is also leveraging its core automotive technologies to address the rapidly growing energy storage segment. In addition, Tesla's software and AI expertise is broadening the industrial opportunity to large and profitable revenue avenues that were previously locked in the legacy vehicle architecture, such as autonomous driving, robotics, insurance, and other AI use cases.

Cloudflare, Inc. (NET) offers enhanced security and performance for websites, apps, and SaaS. Its network spans over 100 countries and connects with over 10,000 ISPs, cloud providers, SaaS providers, and enterprises. Its edge network operates within 100 milliseconds of 99% of the developed world.
Cloudflare's technology is 30% to 50% cheaper than that of peers, while its gross margins are 1,000 to 2,000 basis points higher. It is widely respected among developers, who migrate it from personal to enterprise use. These advantages allow Cloudflare to service about 25% of global internet traffic. We believe Cloudflare will maintain 25%-plus growth for several years given its unique technology and go-to-market strategy that is disrupting a $181 billion market, along with the potential to attack a nascent Edge Computing market that could grow to $10 billion in four years.

Coupang, Inc. (CPNG) is South Korea's largest e-commerce company.
Coupang is expanding its presence across Korea’s e-commerce and broader retail markets, driving continued market share gains as it scales margin-accretive offerings, enhances operations and supply chain logistics, and leverages technology and automation to drive efficiencies. We view Coupang as one of the most competitively advantaged e-commerce businesses globally, with meaningful runway for both revenue and earnings growth.

Nu Holdings Ltd. (NU) is the holding company of Nubank, a leading Latin American digital bank operating in Brazil, Mexico, and Colombia. The company is focused on improving access to financial services through a digital-first model.
Nubank is disrupting the financial services industry in Brazil via its digital distribution and intense focus on user experience, which has allowed it to reach over 112 million customers (roughly 60% of the country’s adult population) in just over a decade. Nu is addressing the key pain points faced by retail bank clients in the region, including high fees, poor customer service, and limited access to financial products. We believe the company’s superior product offering will allow it to take share from incumbents in this massive market.