BlackRock says AI is set to drive markets through 2026

Global markets are entering a period of accelerated change, and BlackRock argues that artificial intelligence (AI) sits at the center of this transformation. 

The asset manager highlights three forces it expects to shape economic conditions and investment strategy over the next two years, emphasizing that the ripple effects of AI are increasingly influencing everything from corporate spending to portfolio construction. 

The first theme, “micro is macro,” reflects the scale of corporate investment flowing into AI infrastructure. BlackRock notes that companies are committing to capital expenditures large enough to influence the broader economy. While future AI-generated revenue may ultimately validate these investments, the firm expects businesses to continually reassess spending plans as energy demands and revenue visibility evolve. 

The second theme, “leveraging up,” points to the financing needed to support this surge in AI-related spending. Because the benefits of these investments may take time to materialize, BlackRock anticipates a rise in corporate borrowing across public and private credit markets—opening potential opportunities for fixed-income and alternative credit investors. 

The third theme, the “diversification mirage,” warns that traditional hedges may lose effectiveness in a market dominated by a few powerful drivers. BlackRock argues that exposures once viewed as diversifiers, such as long-duration Treasuries, may offer less protection ahead. Instead, the firm favors assets with independent return engines, including private markets and hedge funds. 

BlackRock ended by stating: “The bottom line is: we stay pro-risk and think the AI theme will remain a key driver of equity returns. We see an environment ripe for active investing.” 

Market Tracking ETFs: (DIA), (DDM), (DOG), (DXD), (SDOW), (SPY), (VOO), (IVV), (RSP), (SSO), (UPRO), (SH), (SDS), (SPXU), (QQQ), (QQQM), (TQQQ), (QID), and (SQQQ). 

Artificial Intelligence/Robotics ETFs: (AIQ), (BOTZ), (DTEC), (WTAI), (XAIX), (WISE), (GINN), (ROBT), (TECB), (XT), (THNQ), and (CHAT).