BlackRock's Perspective on AI and the Metaverse: Investing Insights

BlackRock's CIO for Global Fundamental Equities, Tony DeSpirito, highlighted the key difference between investing in artificial intelligence (AI) and the metaverse hype of 2021, stating that the demand for AI is real and the earnings growth is just beginning. BlackRock sees AI as a "mega force" and emphasizes the importance of data for AI and potential winners. While BlackRock is not advocating for entering AI at this point, they recommend staying invested due to the real demand for semiconductor chips. BlackRock's investment team suggests being nimble and making explicit decisions about including AI exposure in portfolios. DeSpirito believes that understanding whether AI is boosting profits or becoming an added cost will be crucial in this "stock-picking" market.