BlackRock Predicts Infrastructure and Cybersecurity to Shine in 2025
BlackRock, a leading investment firm, is expecting infrastructure and cybersecurity plays to be top performers in 2025. Jay Jacobs, the firm’s U.S. head of thematic and active ETFs, points to the artificial intelligence boom as a major catalyst for this trend.
The Impact of AI on Investment Opportunities
“It’s still very early in the AI adoption cycle,” Jacobs stated in an interview on CNBC’s “ETF Edge.” He emphasized that AI companies will need to expand their data centers to support the growing demand for AI technology. Additionally, the need for robust cybersecurity measures to protect valuable data presents a significant investment opportunity in the coming year.
Infrastructure Support for Technology Advancements
Jacobs highlighted the importance of the physical infrastructure that supports technological advancements. He noted that energy, data centers, real estate, and materials like copper play a crucial role in enabling the seamless operation of AI technologies. This broader perspective on investment opportunities extends beyond the traditional megacap tech companies.
Expanding Investment Scope
According to Jacobs, investors should look beyond the well-known tech giants and consider other companies that are essential to the AI ecosystem. Semiconductor companies, data center operators, and software providers are all poised to benefit from the rise of AI. BlackRock’s iShares Future AI & Tech ETF (ARTY) and iShares AI Innovation and Tech Active ETF (BAI) are identified as potential ways to capitalize on the growth of AI technology.
Performance of AI-focused ETFs
The iShares Future AI & Tech ETF has seen a 13% increase in value since the beginning of the year, while the iShares AI Innovation and Tech Active ETF, launched in October, has also shown a 13% growth in value. These ETFs represent opportunities for investors to participate in the thriving AI sector.
