Asset management giant BlackRock says one of the market’s most important sectors is doing well heading into 2026.
In a new one reportAccording to BlackRock, the coming year will be all about artificial intelligence (AI), which the company says is growing at an unprecedented pace and will help the US stock market soar to unprecedented heights.
“We have long argued that we are in a world of structural transformation, shaped by a few mega-forces, including geopolitical fragmentation, the future of finance and the energy transition. But the most obvious now is AI, expanding at a potentially unprecedented speed and scale.
This shift from capital-intensive growth to capital-intensive growth is profoundly changing the investment climate and pushing boundaries on multiple fronts: physical, financial and socio-political. A few big macro factors imply a few big market factors.
The current market concentration reflects the underlying economic concentration. This means that, in our view, investors cannot avoid big decisions. AI is currently the dominant mega-force, helping to propel US stocks to record highs this year…
We remain overweight US equities and the AI theme, supported by robust earnings expectations. The capex (investments) can be worthwhile overall, even if this does not apply to individual companies. The next phase may be more about energy and solving bottlenecks.”
However, BlackRock notes that AI faces challenges such as extremely high energy consumption.
“AI data centers could use 15-20% of current US electricity demand by 2030 – a scale that will surely test the limits of the grid, fossil and materials industries…
Some estimates even suggest that data centers could use a quarter of current electricity demand. Rising energy demand is colliding with a backlog of projects waiting to be connected to the grid that are generally slow to obtain permits in the West. The investment plans could be reversed if such limits emerge, jeopardizing the ambition around AI expansion.”
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