AI's growth is just getting started, BlackRock's thematic ETF head says

Published On Dec 7, 2024, 11:00 AM

Jay Jacobs, head of thematic and active ETFs at BlackRock, believes the growth of artificial intelligence (AI) is just beginning, as he outlined in a recent interview. According to Jacobs, AI's adoption cycle has not peaked yet, suggesting significant future growth. He emphasizes the rising need for infrastructure, such as data centers and cybersecurity solutions, triggered by increasing data value, which presents investment opportunities beyond just large tech companies. The BlackRock iShares Future AI & Tech ETF (ARTY) and iShares AI Innovation and Tech Active ETF (BAI) are highlighted as vehicles for investing in this emerging trend, both reporting positive performance this year.

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Stock Forecasts

ARTYView ARTY chart on TradingView

Positive

The AI sector is still in its infancy, with substantial upcoming investments needed in infrastructure and security. This growth potential indicates a positive outlook for ETF investments focused on AI and technology advancements, especially in supporting industries such as chips and data centers.

BAIView BAI chart on TradingView

Positive

Investors may find the surge in cybersecurity investments, as companies focus on data security, appealing. This trend could drive further growth in ETFs that include cybersecurity firms within their portfolios, particularly those aligned with AI developments.

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