BlackRock: Artificial intelligence has no bubble, investment trends will continue to drive market rebound
BlackRock stated that the trend of artificial intelligence investment will continue to drive market rebound, but may trigger inflation in the short term. NVIDIA has become the world's most valuable listed company, while Apple's stock price has hit a historical high. BlackRock believes that artificial intelligence is not in a bubble and continues to choose to increase holdings in technology stocks and artificial intelligence thematic stocks. However, the initial capital expenditure required for artificial intelligence may lead to inflation and potential bottlenecks, which the market and central banks have not yet recognized
According to the Zhītōng Finance and Economics APP, global asset management giant BlackRock stated in a report that the current market rebound driven by the trend of artificial intelligence investment will continue for a period of time, but capital expenditures in artificial intelligence may cause inflation in the short term.
NVIDIA (NVDA.US) surpassed Microsoft (MSFT.US) and Apple (AAPL.US) on Tuesday with a market value of over $3.3 trillion, becoming the world's most valuable listed company. NVIDIA has been a major contributor to the double-digit percentage gains in the S&P 500 Index and the Nasdaq Composite Index so far this year. Meanwhile, Apple's stock price hit a historical high recently after the launch of Apple Intelligence.
Jean Boivin, head of investment research at BlackRock, said, "We believe that the rise of artificial intelligence is supported by earnings and has more room to rise. We do not see an artificial intelligence bubble."
BlackRock stated in the report that in the short-term tactical period of 6 to 12 months, "a concentrated group of winners in artificial intelligence" is expected to drive market returns. Jean Boivin stated that the profitability of large tech companies contrasts sharply with the "unprofitable" companies before the dot-com bubble. BlackRock still chooses to increase holdings in tech stocks and artificial intelligence-themed stocks. Jean Boivin pointed out, "Healthy corporate balance sheets and earnings momentum support our risk appetite."
At the same time, BlackRock also stated that its portfolio managers increasingly believe that the initial capital expenditures required to build artificial intelligence may lead to inflation, with a surge in spending on artificial intelligence data centers, and more spending in the coming years. Jean Boivin said, "This capital expenditure boom and resource utilization may create bottlenecks, which means that artificial intelligence may cause inflation in the short term before releasing any long-term benefits that could alleviate inflation pressures." "In our view, this subtle difference has not been recognized by the market or central banks."