What are BlackRock's AI investment recommendations for 2026?

BlackRock suggests focusing on energy and infrastructure providers as key AI investment opportunities for 2026, shifting away from large tech companies.

Why are investors moving away from big tech for AI investments?

Investors are concerned about uncertain returns on capital and higher borrowing costs associated with the massive data center race driven by big tech firms.

Is the AI investment theme considered a bubble by investors?

BlackRock's survey indicates that only a small percentage of investors believe the AI theme represents a market bubble.

Home / Business and Economy / AI Investment Shifts: Beyond Big Tech

AI Investment Shifts: Beyond Big Tech

13 Jan

•

Summary

Investors favor energy and infrastructure providers for AI in 2026.
Big tech AI dominance wanes amid data center return concerns.
Most EMEA clients see AI theme as distinct investment opportunity.

BlackRock, a leading global asset manager, maintains a positive outlook on artificial intelligence investments extending into 2026. However, the firm observes a significant shift in investor focus, with a growing preference for energy and infrastructure providers over traditional big tech companies. This trend emerged from a recent survey conducted by BlackRock across the EMEA region.

While AI and large technology firms dominated market performance in 2025, the substantial investment race among companies like Microsoft, Meta, and Alphabet to develop new data centers has sparked investor apprehension. Concerns regarding uncertain returns on capital and increasing borrowing expenses are prompting a search for alternative AI investment avenues. BlackRock's survey revealed that a majority of clients in EMEA favor power providers and infrastructure for their AI strategies.

Despite the changing landscape, the sentiment surrounding the AI theme appears robust. Only a small fraction of surveyed clients perceive the AI market as a bubble. BlackRock advises a strategic approach, emphasizing the importance of managing exposure to megacap and AI stocks while actively seeking differentiated upside opportunities in the evolving investment environment.