May Update - Tematica Select Digital Infrastructure Model (DIGI)

Key Takeaways

• DIGI model targets firms building core digital infrastructure
• Updated criteria emphasize fiber, data centers, 5G towers
• Model aims to capture growth from rising data traffic
• Investors gain exposure to essential connectivity assets
• Update released June 1, 2026, reflecting market shifts

Pulse Analysis

The digital infrastructure landscape is entering a pivotal growth phase as global data traffic is projected to double every five years. This surge drives demand for high‑capacity fiber networks, hyperscale data centers, and a dense rollout of 5G and future 6G towers. Companies that design, manufacture, or operate these assets become indispensable, positioning them as strategic investment targets. The DIGI model’s emphasis on these core components aligns with macro trends such as remote work, AI‑driven workloads, and the Internet of Things, all of which require robust, low‑latency connectivity.

Tematica Select’s May update refines the model’s screening methodology to prioritize firms with scalable, capital‑intensive projects that generate recurring revenue streams. By weighting exposure toward semiconductor producers that supply critical chips for networking equipment, alongside operators expanding fiber backbones, the model balances growth potential with defensive cash‑flow characteristics. This approach mirrors the broader shift among asset managers toward thematic funds that isolate high‑growth sectors while managing concentration risk.

For investors, the DIGI model offers a curated pathway to participate in the digital backbone that underpins modern economies. As governments worldwide increase spending on broadband expansion and private enterprises accelerate cloud migration, the model’s constituents are likely to experience sustained earnings uplift. The June 1, 2026 release signals Tematica’s commitment to staying ahead of technological adoption curves, making the DIGI model a compelling addition for portfolios seeking exposure to the infrastructure that will power the next decade of connectivity.