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From: Julius Wong1/4/2024 9:38:22 AM
2 Recommendations   of 8263
 
BlackRock is overweight AI and sees further expansion in the space

Jan. 04, 2024 9:09 AM ET
By: Jason Capul, SA News Editor

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BlackRock argued Thursday that the positive momentum surrounding artificial intelligence is set to continue in 2024, leading the firm to overweight AI-related opportunities.

“We’re overweight the AI theme in DM stocks on a six-to-12-month horizon. We see the tech sector’s earnings resilience persisting and expect it to be a big driver of overall U.S. corporate profit growth in 2024,” BlackRock said in its 2024 Global Outlook report.

The world's largest asset manager outlined that the AI technology space can be viewed as a building block of sub industries.

At the base level, there is infrastructure that is needed to train AI models on large clusters of high-performance machines along with manufacturing of chips and semiconductors that will be used for computational power. Moving up the ladder, data infrastructure businesses that use proprietary or open-source language to build models store data and train AI applications is next. Finally, the AI application itself for a specific segment is the end product.

“We see investment opportunities moving up the stack as technology evolves – from hardware manufacturers to digital and data infrastructure and ultimately to applications.”

For investors who want to further analyze and understand the AI landscape, here are a group of artificial intelligence-based ETFs:

  • GX Artificial Intelligence & Tech ETF (NASDAQ: AIQ)
  • GX Robotics & Artificial Intelligence ETF (NASDAQ: BOTZ)
  • ALPS Disruptive Technologies ETF (NYSEARCA: DTEC)
  • Goldman Sachs Innovate Equity ETF ( GINN)
  • iShares Robotics and Artificial Intelligence Multisector ETF (NYSEARCA: IRBO)
  • Artificial Intelligence and Robotics ETF ( ROBT)
  • iShares U.S. Tech Breakthrough Multisector ETF ( TECB)
  • iShares Exponential Technologies ETF ( XT)
  • Robo Global Artificial Intelligence ETF ( THNQ)
  • Roundhill Generative AI & Technology ETF ( CHAT)
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