GINN - BlackRock says AI has room to run but investors should remain selective
2023-07-20 08:55:24 ET
BlackRock said Wednesday that it remains bullish on artificial intelligence but also warned that market participants need to become selective when it comes to choosing individual names.
“We see room to run for the AI theme but are focused on taking a more selective approach to identifying winners in the space,” the asset manager stated in an investor note.
The 2023 rally in equity markets was fueled in part by optimism about the prospects for AI technology. However, the sharp gains seen by many companies tied to artificial intelligence has led some to worry about a possible bubble.
BlackRock listed a few reasons to why it remains positive on the artificial intelligence theme and why it does not see the current AI situation as analogous to the dot-com bubble of the late 1990s and early 2000s.
No. 1: “Technology today is different from late-1990s technology.”
No. 2: “AI is not necessarily a speculative long-duration play.”
No. 3: “Concentration in the technology sector was higher leading up to the dot-com burst.”
BlackRock isn’t the only financial institution to say that AI is here to stay. UBS recently stated : “We don’t believe the AI trend is a bubble but advise investors to be selective on AI-related stocks.”
Investors who want to further analyze the AI sphere may look towards exchange traded funds for a more diversified approach. Listed below or 10 popular artificial intelligence-based ETFs:
- GX Artificial Intelligence & Tech ETF ( NASDAQ: AIQ )
- GX Robotics & Artificial Intelligence ETF ( NASDAQ: BOTZ )
- ALPS Disruptive Technologies ETF ( DTEC )
- Goldman Sachs Innovate Equity ETF ( GINN )
- iShares Robotics and Artificial Intelligence Multisector ETF ( NYSEARCA: IRBO )
- Artificial Intelligence and Robotics ETF ( NASDAQ: ROBT )
- iShares U.S. Tech Breakthrough Multisector ETF ( TECB )
- iShares Exponential Technologies ETF ( XT )
- Robo Global Artificial Intelligence ETF ( THNQ )
- Roundhill Generative AI & Technology ETF ( CHAT ) ( Recently launched on May 18 ).
More on Artificial Intelligence:
- Global X sees reasons for optimism in H2, cites AI as a growth engine
- BofA takes neutral view on AI ETFs, weighing growth potential vs. near-term headwinds
- Barclays spotlights 'immense' potential for AI, points to NVDA, MSFT as 'key names'
For further details see:
BlackRock says AI has room to run but investors should remain selective