Thematic Mid-Year Update: What's Next For AI And Geopolitics

seekingalpha07-20

Investors may want to look beyond today’s market leaders to seek diversification and resiliency in their portfolios, uncovering underappreciated assets poised to benefit from mega forces that can ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2452519702?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1795495467/image_1795495467.jpg","is_english":true,"pubTime":"2024-07-20 15:10","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2452519702","market":"us","top_or_hot":-1,"title":"Thematic Mid-Year Update: What's Next For AI And Geopolitics","media":"seekingalpha","content":"<div>\n<p>Investors may want to look beyond today’s market leaders to seek diversification and resiliency in their portfolios, uncovering underappreciated assets poised to benefit from mega forces that can ...</p>\n\n<a href=\"https://seekingalpha.com/article/4705255-thematic-mid-year-update-what-next-for-ai-geopolitics\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Thematic Mid-Year Update: What's Next For AI And Geopolitics</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThematic Mid-Year Update: What's Next For AI And Geopolitics\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-20 15:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4705255-thematic-mid-year-update-what-next-for-ai-geopolitics><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Investors may want to look beyond today’s market leaders to seek diversification and resiliency in their portfolios, uncovering underappreciated assets poised to benefit from mega forces that can ...</p>\n\n<a href=\"https://seekingalpha.com/article/4705255-thematic-mid-year-update-what-next-for-ai-geopolitics\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4581","symbol_name":"高盛持仓","start_time":0,"source_url":"https://seekingalpha.com/article/4705255-thematic-mid-year-update-what-next-for-ai-geopolitics","article_id":"2452519702","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1795495467/image_1795495467.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2452519702","pubTimestamp":1721459400,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Investors may want to look beyond today’s market leaders to seek diversification and resiliency in their portfolios, uncovering underappreciated assets poised to benefit from mega forces that can pote","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4581":"高盛持仓","BK4504":"桥水持仓","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","BK4135":"资产管理与托管银行","ICOP":"iShares Copper and Metals Mining ETF","IE0004091025.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"B\" (USD) ACC","LU0072462426.USD":"贝莱德全球配置 A2","LU1670628061.USD":"M&G (LUX) NORTH AMERICAN DIVIDEND \"A\" (USD) INC","BK4529":"IDC概念","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","SOXX":"iShares费城交易所半导体ETF","LU0056508442.USD":"贝莱德世界科技基金A2","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","IE00BZ199S13.USD":"BNY MELLON MOBILITY INNOVATION \"B\" (USD) ACC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4592":"伊斯兰概念","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BIL":"债券指数ETF-SPDR Barclays美国1-3月国债","BK4585":"ETF&股票定投概念","LU1670627923.USD":"M&G (LUX) NORTH AMERICAN DIVIDEND \"A\" (USD) ACC","EM":"怪兽充电","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","BK4587":"ChatGPT概念","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","IDGT":"ISHARES U.S. DIGITAL INFRASTRUCTURE AND REAL ESTATE ETF","LU2505996681.GBP":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (GBPHDG) INC","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","BK4527":"明星科技股","BLK":"贝莱德","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU2505996509.AUD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (AUDHDG) INC","BK4579":"人工智能","BK4588":"碎股","IETC":"iShares U.S. Tech Independence Focused ETF","LU1291159041.SGD":"CPR Invest - Global Silver Age A2 Acc SGD-H","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","BK4141":"半导体产品","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","BK4076":"电脑与电子产品零售","IE00B19Z8W00.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"A\" INC","BK4503":"景林资产持仓","BLCV":"BLACKROCK LARGE CAP VALUE ETF","BK4551":"寇图资本持仓","LU0731783394.SGD":"Fidelity Global Dividend A-MINCOME(G)-SGD","NVDA":"英伟达","EMXC":"iShares MSCI Emerging Markets ex China ETF","BK4505":"高瓴资本持仓","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC"},"translate_title":"年中主题更新：人工智能和地缘政治的下一步是什么","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SOXX":1,"BIL":1,"IDGT":1,"ICOP":1,"EMXC":1,"EM":1,"BLCV":1,"IETC":1,"NVDA":1,"BLK":0.9},"content_text":"Investors may want to look beyond today’s market leaders to seek diversification and resiliency in their portfolios, uncovering underappreciated assets poised to benefit from mega forces that can potentially drive long-term growth.Integration across industries is driving massive demand for AI’s Infrastructure:  data centers, semiconductors, and raw materials.This buildout, thought to continue through 2030, will require significant infrastructure investment, across semiconductors, energy, and metals like copper.Geopolitical fragmentation requires an evaluation of overseas dependence and a focus on U.S. reshoring. Shifting supply chains and varied demographics create strategic prospects across markets.   J Studios Originally published on June 24, 2024 By Jay Jacobs As the AI buildout propels a potentially historic capital expenditure cycle, investors could be poised to unearth opportunities across industries amid greater geopolitical fragmentation. Jay Jacobs, U.S. Head of Thematic and Active ETFs at BlackRock Looking for Opportunities Beyond Today’s Leaders U.S. and international equity markets have demonstrated resilience, flirting with all-time highs, despite significantly reduced expectations in the number of Fed rate cuts in 2024 and lingering inflation worries. This performance, however, has been narrowly concentrated at both the stock and sector levels, including in AI, tech, and emerging markets. We believe investors may want to look beyond today’s market leadership to find underappreciated areas that may be well-positioned to benefit from powerful secular tailwinds, or mega forces, that can drive long-term growth. In a market characterized by greater dispersion, equity investors can look beyond recent market leaders to pinpoint beneficiaries both within and beyond mega-cap tech and AI. Jeff Shen, PhD, BlackRock Systematic Equities Co-CIO In the short term, we believe two mega forces have the potential to reshape the global economy and could reach critical inflection points:  The transformative potential of Artificial Intelligence (AI) and its catalyzation of a historic cycle of capital expenditure. The growing impact of geopolitics on trade and technology amid a wave of elections globally.  In our Thematic Mid-year Update, we focus on these two mega forces and highlight where we believe the most compelling opportunities lie. Within AI, we look to the ‟picks-and-shovels” of this technology amid tremendous demand for hardware, digital infrastructure, and power. Within geopolitics, we look to potential beneficiaries of changing supply chains, including a domestic focus on tech and manufacturing, as well as emerging market up-and-comers. Artificial Intelligence (AI): A Picks and Shovels Approach AI has transcended “buzzword status,” with businesses across all sectors looking to quickly integrate the technology. It’s estimated that over 80% of enterprises will have used generative AI by 2026, up from less than 5% in 2023, noting the technology can both improve efficiency and enhance products & services.1 Companies have different AI platforms to choose from (ChatGPT, Claude, etc.), but virtually all paths of greater AI adoption are set to accelerate demand for the underlying infrastructure that powers the technology or the “picks and shovels” of the AI industry: data centers, semiconductors, and certain raw materials. We are facing what may become one of the largest infrastructure efforts in world history, driven by the explosive growth of AI adoption. There is immediate and tremendous demand for data centers that must be built with AI workloads in mind, and the computing power and data storage necessary to support AI’s growth. Jensen Huang, CEO of Nvidia (NVDA), estimates that the shift from general-purpose computing to accelerated computing is expected to require at least $1 trillion of investment if not more, and believes we are only 5% into this buildout.2 In our view, the market is underestimating the amount of money that will be spent on the development of data centers over the next 5-6 years. 2023 marked the onset of a new industrial revolution. We are now building ever-larger AI factories to manufacture intelligence. This buildout phase is only in its second year and I expect it to continue throughout the decade, to become the largest infrastructure investment in history. Tony Kim, BlackRock Head of Fundamental Equities Global Technology The potential beneficiaries of this historic capex cycle are vast, ranging from operators and suppliers of data centers to a broad range of semiconductors, as well as electric power infrastructure and critical materials. Worldwide AI Chips Revenue is Expected to Jump to $71 Billion in 2024, a 33% Surge From 2023³ Markets and headlines have largely focused on one type of semiconductor critical to AI called a Graphics Processing Unit (GPU), which performs complex computations in parallel. GPUs are crucial for training large language models or (LLMs), like ChatGPT. GPUs are not the only type of chip that may benefit from broader AI adoption, other types of semiconductors or “chips,” along with their equipment and packaging, all play a critical role in the AI ecosystem and are potential beneficiaries. We believe, the AI opportunity is bigger than just one semiconductor company. The industry is projected to reach $1 trillion in revenue by 2030, with computing and data storage driving 25% net growth.4 As such, the broader semiconductor sub-industry could be well-positioned amid this AI capex ramp up. The global semiconductor industry is projected to reach $1trillion in revenue by 2030 Global semiconductor market value by vertical, $B  Source: McKinsey. \"The semiconductor decade: A trillion-dollar industry\", as of April 1, 2022. CAGR refers to the compound annual growth rate (%). For illustrative purposes only. Forward-looking estimates may not come to pass. Chart description: Bar chart showing that by McKinsey estimates, the global semiconductor industry is projected to become a trillion-dollar industry by 2030, largely driven by the automotive, data storage, and wireless segments. Power infrastructure may need an overhaul to keep up with AI energy demand. AI data centers cannot support the growth of the technology without another crucial input, power. Data centers need an abundance of inexpensive electricity to run powerful servers and keep them cool. Critical IT power is defined as the usable electrical capacity at the data center floor which is available to computer servers and networking equipment that is housed within the server racks. The chart below shows a measure of the power capacity available to U.S. data centers (in megawatts). Critical IT capacity in the U.S. will need to triple from 2023 to 2027, and surge well beyond, to keep pace with rising demand - with the vast majority driven by AI’s arrival.5 The use of power toward Al data centers is expected to grow rapidly Global data center critical IT power (megawatts–MW)  Source: semianalysis.com, “AI Datacenter Energy Dilemma – Race for AI Datacenter Space”, as of March 13, 2024. For illustrative purposes only. Forward-looking estimates may not come to pass. Chart description: Bar chart showing the use of critical IT power in megawatts broken out by AI data center usage and non-AI data center usage. The AI data center usage is increasing over time and is estimated to triple from 2023 to 2027. All of this means we may see a demand for power not experienced since the dotcom boom, that's because along with AI’s rise, other power-hungry themes are emerging like electrification, Electric Vehicles (EVs) and a potential resurgence in US manufacturing (driven by reshoring). Adding energy production capacity, improving power transmission, and scaling energy storage solutions will be key to meeting this resurgence in energy demand.6 Investors interested in the AI theme may consider the iShares Semiconductor ETF (SOXX), the iShares US Digital Infrastructure and Real Estate ETF (IDGT), and the BlackRock Technology Opportunities Fund (BGSIX). Copper could be the chokepoint for meeting demand for energy infrastructure and digital infrastructure. Copper is an essential input to many aspects of energy infrastructure as well as digital infrastructure. Copper demand is growing rapidly; it’s projected to rise nearly 20% by 2030 from 2023 under the IEA's Stated Policies scenario7, which is based on the current policy landscape. While clean energy applications are expected to be the biggest drivers of copper demand growth, data centers will also play an important role. Yet despite several secular tailwinds driving copper demand growth, supply growth remains anemic. World copper mine production is growing slower than expected, as it takes on average 10-20 years to permit and build a new copper mine.8 Persistent copper supply deficits could become a chokepoint for AI’s growth if energy infrastructure is unable to keep up with soaring power demand due to a lack of copper. JPMorgan forecasts that the additional power consumption required by data centers could add another 2.6 million tons, to an already 4 million metric tons deficit by 2030.9 Investors interested in copper may consider the iShares Copper and Metals Mining ETF (ICOP). Geopolitics: Tech and Supply Chains at the Center of a Global Election Year Geopolitics is increasingly important to the global economy especially in a year where countries representing half the world’s population are holding elections.Domestic and foreign policies have rapidly reshaped supply chains, with technology and manufacturing drawing the lion’s share of attention amid intensifying global economic competition. Dispersion is accelerating for U.S. technology stocks at the intersection of innovation and geopolitics. Evolving dynamics in globalization and industrial policy have the potential to disrupt years of established hiring practices and growth strategies. Linus Franngard, BlackRock Systematic Equities Portfolio Manager The U.S. technology sector is highly globally-dependent, deriving large parts of its supply chains and nearly 60% of its revenue overseas10. Given its exposure to economic and national security, the technology sector is increasingly caught in the crosshairs of rising geopolitical tensions. Tariffs, export bans, and corporate fines are becoming commonplace between economic blocs as AI, data privacy, and semiconductor supply chains become increasingly important to economic policy and politicians platforms. As such, we are seeing a clear dispersion forming between tech firms that are more exposed to geopolitical risks and those who aren’t. One way to measure exposure to geopolitical risk is to look at company hiring practices. In the chart below, we highlight global job postings by American tech companies. The yellow bars represent the firms with the most U.S. -centric job listings, and the purple bars represent the firms with the most international hiring practices. Over time, we see a clear and growing divide between tech firms that hired abroad and those who invested in maintaining a U.S.-focused workforce. In our view, this gap reveals a potential investment opportunity focused on identifying companies driving domestic self-sufficiency and mitigating geopolitical risks. In addition, we believe these firms with more U.S. centric hiring are potentially poised to benefit more from government support, such as tax credits or government contracts, vs. their more globally exposed peers. Widening gap in international hiring trends of U.S. firms (2016-2024) Historical percentages of jobs posted abroad  Source: Burning Glass Technologies, as of June 2024 using data as of May 2024. For illustrative purposes only. Chart description: Bar chart showing U.S. tech firms with the most U.S.- centric job listing, and the firms with the most international hiring practices, highlight a clear and growing divide over time between firms that hired abroad and those who invested in maintaining a U.S. focused workforce. Investors interested in tech independence may consider the iShares U.S. Tech Independence Focused ETF (IETC). Looking beyond tech, manufacturing is enjoying a renaissance in the United States as policy efforts to “reshore” production are yielding powerful results. Since the pandemic, the U.S. has implemented several policies to increase domestic production and reduce reliance on global supply chains. These policies, which include the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and the Chips and Science Act, are expected to lead to well over $1 trillion in spending11 to rebuild infrastructure, support high-growth industries like EVs, and secure supply chains for key technologies like semiconductors. Reshoring is the process of bringing production or manufacturing back to the country of origin, previously outsourced to other countries. By bringing manufacturing back to the U.S., the risks of unstable supply chains, shipping delays, poor product quality, and trade tensions could dramatically decrease. Tony DeSpirito, BlackRock Global Fundamental Equities CIO While government stimulus often aims to drive domestic economic growth, reshoring policies may also increase the resiliency of the U.S. economy, via the reskilling of the manufacturing workforce, enhancing the quality and safety of products, and reducing the potential impact of geopolitical tensions on our ability to procure vital goods. Total construction spending in manufacturing in the U.S. has increased 4X since 2014  Source: Federal Reserve Economic Data, “Total Construction Spending: Manufacturing in the United States, Millions of Dollars, Monthly, Seasonally Adjust Annual Rate”, as of May 2024. Chart description: Line chart showing total construction spending in the U.S. in millions starting in March of 2014 through March of 2024, with the amount increasing 4x over the time period. Regardless of the outcome in this year’s presidential election, the reshoring trend could accelerate through increased tariffs, government spending, or both. “On trade, presumptive Republican nominee, former President Trump has suggested a more protectionist stance that would levy a 10% across-the-board tariff and a 60% tariff on Chinese goods,” according to the BlackRock Investment Institute. Presumptive Democratic nominee, President Biden is expected to keep his current protectionist policies, like higher tariffs for some sectors, industrial policies favoring domestic production and the use of export controls.12 Investors interested in capturing the themes of U.S. manufacturing and reshoring may be interested in the BlackRock Large Cap Value ETF (BLCV), which is actively managed by Tony DeSpirito and the BlackRock Income & Value team. The intersection of trade policy and youthful demographics could spur emerging market (EM) opportunities Outside the U.S., trade policy and rewiring supply chains are creating new opportunities in select emerging markets. Among those countries positioned to potentially benefit are Mexico and India. Mexico remains the U.S.’s top trading partner, benefiting from geographic proximity, strong manufacturing-based economy with competitive labor costs, and increased supply chain integration with the U.S. The June election of Claudia Sheinbaum, as Mexico’s president could signal a continuation of recent deepening trade ties to the U.S. given that she comes from the same political party as Mexico’s outgoing incumbent. Similar trends are occurring in India where the labor pool is deepening its ties with the U.S. Boosted by a large, youthful, English-speaking working population. As a result, both India and Mexico have experienced GDP growth at a higher rate in the past three years than in the previous decades.13 While near-term growth may be driven more by policies surrounding rewiring supply chains, demographics could become a primary driver of long-term economic growth in these countries. By 2050, China’s share of working age population could see a significant decline to below 60% from 73% seen in early 2010s, as evidenced in the chart below.14 Other EM countries like India, Indonesia, and Mexico may see both population growth and a more stable composition of working age population over the next few decades. This divergence is highlighted in the below chart, showing that demographics will play an increasingly important role in supply chains and trade relationships as developed markets like the United States, Europe and Japan continue to age and see slowing workforce growth. Investors interested in exposure to the theme of Emerging Market supply chains and demographics may be interested in the iShares Emerging Markets Ex-China ETF (EMXC). Shifting population landscapes in emerging economies (working-age population as % of total population)  Source: Reuters Refinitiv, data based on 2023 OECD Labour Force Statistics. Chart description: Line chart showing the working-age population as a % of total population in India, China, Brazil, Mexico, and Indonesia. Highlighting a diversion in demographic trends over time. For illustrative purposes only. Forward-looking estimates may not come to pass. Conclusion The vast acceleration we’re seeing in AI along with the impact of elections around the world are real catalysts presenting potential investment opportunities, ranging from the picks and shovels being used in the AI buildout, to the reshaping of global supply chains. Thematic strategies, using a tailored construction process in each theme’s value chain, may allow investors to capture the tailwinds of mega forces that are reshaping our global economy. © 2024 BlackRock, Inc. All rights reserved. 1 Gartner, Catherine Howley, “Gartner Says More Than 80% of Enterprises Will Have Used Generative AI APIs or Deployed Generative AI-Enabled Applications by 2026.” As of October 11, 2023. Forward-looking estimates may not come to pass. 2 The Motley Fool, Nicholas Rossolillo, “Nvidia CEO Jensen Huang Says “A New Computing Era Has Begun- How Much Higher Can the Stock Fly”. As of August 27, 2023. Forward-looking estimates may not come to pass. 3 Gartner, “Gartner Forecasts Worldwide AI Chips Revenue to Grow 33% in 2024.” As of May 29, 2024. Forward-looking estimates may not come to pass. 4 McKinsey & Company “The Semiconductor decade: a trillion-dollar industry” as of April 1, 2022. Net growth calculated based on total revenue of $590B in 2021, with a $125b growth in revenue of computing and data storage from 2021 to 2030, accounting for 25% total net growth of the global semi market at $475B. Forward-looking estimates may not come to pass. 5 Semianalysis, “AI Datacenter Energy Dilemma- Race for AI Data Center Space.” As of March 13, 2024. 6 Goldman Sachs, “Generational Growth- AI data centers and the coming US power demand surge.” As of April 28, 2024. Forward-looking estimates may not come to pass. 7 IEA, “Global Critical Minerals Outlook 2024.” Page 263. As of May 2024. Forward-looking estimates may not come to pass. 8 Reuters, Ernest Scheyder, “Copper Industry warns of looming supply gap without more mines.” As of April 21, 2023. Forward-looking estimates may not come to pass. 9 WSJ Pro, Joseph Hoppe & Chrisan Moess Laursen, “AI Siphons Copper Supplies Needed for Green Transition.” As of June 6, 2024. Forward-looking estimates may not come to pass. 10 Source: BlackRock, Aladdin Explore, using revenue breakdowns from the S&P 500 index as of 4/30/2024. 11 U.S. Department of transportation, “Bipartisan Infrastructure Law (BIL) / Infrastructure Investment and Jobs Act (IIJA). Illustrating the IIJA act alone authorizes over $1 Trillion. 12 BlackRock Investment Institute, “What we’re watching in 2024 elections.” As of June 10, 2024. 13 International Monetary Fund, “GDP per capita, current prices.” As of May 2024. 14 Reuters Refinitiv, data based on 2023 OECD Labour Force Statistics. Forward-looking estimates may not come to pass.  Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares Fund and BlackRock Fund prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries. Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and than the general securities market. Actively managed funds do not seek to replicate the performance of a specified index, may have higher portfolio turnover, and may charge higher fees than index funds due to increased trading and research expenses. Negative changes in commodity markets could have an adverse impact on companies the Fund invests in. The price of the equity securities of companies engaged in mining and the price of the mined metals may not always be closely linked. Worldwide metal prices may fluctuate substantially over short periods of time, so the Fund's share price may be more volatile than other types of investments. Technology companies may be subject to severe competition and product obsolescence. Convertible securities are subject to the market and issuer risks that apply to the underlying common stock. The Fund's use of derivatives may reduce the Fund's returns and/or increase volatility and subject the Fund to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. The Fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited. There can be no assurance that the Fund's hedging transactions will be effective. Small-capitalization companies may be less stable and more susceptible to adverse developments, and their securities may be more volatile and less liquid than larger capitalization companies. This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective. The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This material contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial professional before making an investment decision. The information provided is not intended to be tax advice. Investors should be urged to consult their tax professionals or financial professionals for more information regarding their specific tax situations. The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, \"BlackRock\"). The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Bloomberg, BlackRock Index Services, LLC, Cboe Global Indices, LLC, Cohen & Steers, European Public Real Estate Association (“EPRA® ”), FTSE International Limited (“FTSE”), ICE Data Indices, LLC, NSE Indices Ltd, JPMorgan, JPX Group, London Stock Exchange Group (“LSEG”), MSCI Inc., Markit Indices Limited, Morningstar, Inc., Nasdaq, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), Nikkei, Inc., Russell, S&P Dow Jones Indices LLC or STOXX Ltd. None of these companies make any representation regarding the advisability of investing in the Funds. With the exception of BlackRock Index Services, LLC, who is an affiliate, BlackRock Investments, LLC is not affiliated with the companies listed above. Neither FTSE, LSEG, nor NAREIT makes any warranty regarding the FTSE Nareit Equity REITS Index, FTSE Nareit All Residential Capped Index or FTSE Nareit All Mortgage Capped Index. Neither FTSE, EPRA, LSEG, nor NAREIT makes any warranty regarding the FTSE EPRA Nareit Developed ex-U.S. Index, FTSE EPRA Nareit Developed Green Target Index or FTSE EPRA Nareit Global REITs Index. “FTSE®” is a trademark of London Stock Exchange Group companies and is used by FTSE under license. © 2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners. iCRMH0624U/S-3656353  This post originally appeared on the iShares Market Insights.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.3","shortVersion":"4.26.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2452519702"}