Artificial Intelligence (AI) is one of the powerful mega forces reshaping the global economy. There are several ways to approach this theme for investors seeking exposure to AI.
AI-related ETFs aim to capture the broad impact of AI technologies, offering exposure to a cross-section of companies that could stand to benefit from AI advancements.
Historic infrastructure investment
AI's growth has been driving a historic capital expenditure cycle across the broader infrastructure of this technology, spanning many sectors and industries.1
Semiconductor revenue surge
The AI chip market could surge, reaching $1 trillion in revenue by 2030, providing a broad investment avenue for investors.2
Energy demand growth
Critical IT power capacity in the U.S. will need to triple from 2023 to 2027, and surge well beyond, to keep pace with rising demand driven by AI.3
Greater AI adoption could accelerate demand for the underlying infrastructure that powers the technology or the “picks and shovels” of the AI industry: data centers, semiconductors, and certain raw materials.
Global data center critical IT power (megawatts–MW)
Source: semianalysis.com, “AI Datacenter Energy Dilemma – Race for AI Datacenter Space”, as of March 13, 2024. For illustrative purposes only. Forward-looking estimates may not come to pass.
Chart description: Bar chart showing the use of critical IT power in megawatts broken out by AI data center usage and non-AI data center usage. The AI data center usage is increasing over time and is estimated to triple from 2023 to 2027.
Investing in AI-related ETFs doesn't have to be complicated. iShares offers several ways to access the AI theme, from pure-play technology exposures to products targeting the broader AI ecosystem.
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Investors may consider investing in AI as it is reshaping industries and economies around the world. AI's rapid growth demands significant investment in infrastructure like data centers, semiconductors and raw materials, offering an opportunity for investors to tap into a market that could be poised for significant growth.
AI technology has been driving a historic capital expenditure cycle, with significant infrastructure investments needed for data centers, semiconductors, and power. This buildout is anticipated to continue through 2030, offering an opportunity for investors to participate in the AI theme.4
Investors seeking exposure to the AI theme may choose a pure-play exposure focused exclusively on the artificial intelligence opportunity, or complementary exposures targeting themes within the broader artificial intelligence ecosystem, including, but not limited to, semiconductors, digital infrastructure, and copper.
Investing in AI focuses on a specific transformative technology with growth potential, while tech sector investments cover a broader range of companies and innovations. AI investment offers a targeted approach to a sector driving significant infrastructure and economic changes.
BlackRock and iShares offer AI-related ETFs that provide exposure to leading AI innovators, leveraging their expertise and diverse offerings to help investors capture potential growth in AI technology.
BlackRock uses AI to inform investment decisions, analyze large data sets, and help understand complex problems and to enable investment professionals to develop innovative investment approaches.
Investing in AI carries risks such as data inaccuracy, intense competition, rapid product obsolescence, and dependency on consumer base and end-user demand. Companies may also face sector-specific market and business risks, affecting overall performance.
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1 BlackRock, "Thematic Mid-Year Update," June, 2024. Forward-looking estimates may not come to pass.
2 McKinsey & Company “The Semiconductor decade: a trillion-dollar industry” as of April 1, 2022. Net growth calculated based on total revenue of $590B in 2021, with a $125b growth in revenue of computing and data storage from 2021 to 2030, accounting for 25% total net growth of the global semi market at $475B. Forward-looking estimates may not come to pass.
3 Semianalysis, “AI Datacenter Energy Dilemma- Race for AI Data Center Space.” As of March 13, 2024. Forward-looking estimates may not come to pass.
4 BlackRock, "Thematic Mid-Year Update," June, 2024. Forward-looking estimates may not come to pass.
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