As the landscape of technological innovation continues to evolve, BlackRock has underscored the immense potential that infrastructure and cybersecurity investments hold for 2025. The U.S. head of thematic and active ETFs at BlackRock, Jay Jacobs, recently highlighted that the surge of artificial intelligence (AI) plays a crucial role in shaping these investment prospects. With AI still in its early stages of adoption, it propels not just the tech giants, but a diverse range of associated sectors that promise lucrative returns.
Jacobs articulated that the burgeoning demand for AI capabilities will necessitate substantial investments in the infrastructure that supports it. This encompasses a variety of physical assets—from data centers, which are essential for processing vast amounts of information, to energy requirements stemming from advanced technological operations. Simply put, as AI becomes more integrated into various industries, the need for robust infrastructure will become a reality investors can no longer overlook.
The importance of cybersecurity cannot be emphasized enough in this growing data-centric world. Jacobs pointed out that as the value of data intensifies, so too does the imperative for security measures. With AI systems managing sensitive information and crucial business operations, securing this data from potential threats will become a top priority. Herein lies a distinct investment avenue—companies that specialize in cybersecurity solutions are poised for rapid revenue growth, fueled by the surge in AI-related initiatives and the accompanying need for fortified digital defenses.
Investors are encouraged to redirect their focus towards the software sector, particularly those firms innovating in cybersecurity, which is adapting to meet the sophisticated demands of modern technology. The broader economic landscape reveals a pressing need for technologies that can protect the data integrity of both businesses and consumers alike.
While the magic of technology often conjures visions of intangible services and products, Jacobs poignantly reminded us that tangible resources underpin this digital revolution. From the energy required to power data centers to raw materials like copper used in semiconductor manufacturing, investment strategies must embrace a comprehensive viewpoint that includes these foundational elements. The physical structures supporting digital advancements are critical and often overlooked, yet they represent significant potential for returns as AI adoption accelerates.
Expanding upon this notion, Jacobs emphasized that investors’ interests must broaden beyond the conventional megacap tech firms to include their lesser-known counterparts. Emerging semiconductor companies, up-and-coming data center operators, and innovative software solutions are prime candidates that stand to benefit from the expanding AI ecosystem.
Investment Vehicles for the Future
For those looking to capitalize on these developments, BlackRock offers targeted investment vehicles such as the iShares Future AI & Tech ETF (ARTY) and the iShares AI Innovation and Tech Active ETF (BAI). Both funds have demonstrated promise, with ARTY showing a 13% increase year-to-date and BAI marking a solid performance since its recent launch.
Ultimately, the intersection of artificial intelligence, infrastructural growth, and cybersecurity investment presents a multifaceted opportunity for forward-thinking investors. By harnessing the momentum from AI advancements and recognizing the underlying physical and digital frameworks that support these technologies, investors can strategically position themselves for long-term growth in the rapidly evolving technological landscape.