Market Commentary

BlackRock Goes Bullish on AI Tech While Stock Faces Decline

Aisha Khan
6 Feb 2024 · 2 minutes read

BlackRock Inc (BLK:US)’s stock opened this week at its lowest price all October: $611.44, before closing at $614.73 on Monday. Based in the United States, the investment manager is only the latest issuer to go bullish on evolving AI tech. 

In a recent reveal, BlackRock is looking to actively integrate AI, particularly large language models, into its investment analysis processes. The focus is on leveraging these technologies to enhance the understanding of market conditions, identify investment themes, and improve overall investment outcomes.

Jeff Shen, Co-CIO and co-head of Systematic active equity at the fund was reported saying, “Generative AI and big data is transforming pretty much every industry out there. I don’t think investment will be immune to it.

On a side note, BlackRock said that if investors are expecting a resurgence in the S&P 500 rally fueled by the growth of U.S. corporate earnings, they may be in for a letdown. Disappointments could arise due to possible inflation. The latter could create challenges for the expected growth in U.S. corporate earnings that they are hoping for in the S&P 500 rally.

BlackRock observes that U.S. business profits and the economy have reached a stable point. Although they are being careful about investing broadly in stocks for the next 6 to 12 months, BlackRock is optimistic about big technology companies, healthcare, and Japanese stocks.

Not too long ago, most lawmakers were busy selling BLK stock. These trades coincided with the Government’s planned investigation into the fund’s investment in off-shore issuers, particularly those in China.

The selling spree by lawmakers continued later, with Senator Dan Sullivan selling up to $15,000 worth on Aug 22. At the same time, Rep. Ro Khanna and Senator Markwayne Mullin bought a significant chunk of shares from August to September.