BlackRock The infrastructure and cybersecurity sectors are expected to shine in 2025.
Jay Jacobs, the firm’s head of U.S. thematic and active ETFs, sees the artificial intelligence boom as a major catalyst.
“It’s still early days in the AI adoption cycle,” he told CNBC’s “ETF Edge” this week.
Jacobs believes that artificial intelligence companies need to build their own data centers. Additionally, keeping your data secure is a smart investment in the New Year.
“If you think about your data, you want to invest more in cybersecurity because it becomes more valuable,” he said. “We think this will really benefit the cybersecurity (and) software community because the revenue from this type of artificial intelligence is growing very rapidly.”
Jacobs also sees the broader impact of supporting infrastructure.
“I think what people forget is that as amazing as the technology is, there are physical things on the ground that run that technology, whether it’s power and data centers and real estate or chips. It’s not just the things that live in it.” Ether , in the cloud, real physical things have to happen, which means energy, which means more materials like copper, which means more real estate, and you really have to think about the physical infrastructure behind it. .
So for Jacobs, the theme is broadening the scope of investments.
“This is not just a problem for the big tech companies. There are other semiconductor companies, other data center companies, other software companies that have benefited from the rise of this theme,” he said.
BlackRock’s iShares Future AI & Tech ETF (ARTY) and iShares AI Innovation and Tech Active ETF (BAI) are potential ways to benefit from the rise of artificial intelligence, Jacobs said. The iShares Future AI & Tech ETF has gained about 13% so far this year, while the iShares AI Innovation and Tech Active ETF has gained about 13% since its launch on October 21 as of Friday’s close.
About The Author
