In this article, BlackRock anticipates that infrastructure and cybersecurity sectors will perform well in 2025. Jay Jacobs, the firm’s U.S. head of thematic and active ETFs, highlights the artificial intelligence (AI) boom as a significant driver. He mentioned in an interview with CNBC’s “ETF Edge” that it is still early in the AI adoption cycle. Jacobs emphasized that AI companies must expand their data centers and investing in cybersecurity is a wise move for the upcoming year as data becomes more valuable.
He pointed out that increasing cybersecurity spending is crucial as data becomes more valuable. Jacobs believes that this trend will particularly benefit the cybersecurity and software sectors, which are experiencing rapid revenue growth due to AI. Additionally, Jacobs emphasized the importance of the physical infrastructure that supports technological advancements, such as power, data centers, real estate, and chips.
According to Jacobs, investors should broaden their investment horizons beyond large-cap tech companies. He mentioned that other semiconductor, data center, and software companies are also profiting from the growth of AI. Jacobs recommended BlackRock’s iShares Future AI & Tech ETF (ARTY) and iShares AI Innovation and Tech Active ETF (BAI) as potential investment options to capitalize on the AI trend. The iShares Future AI & Tech ETF has seen a 13% increase in value this year, while the iShares AI Innovation and Tech Active ETF has risen by approximately 13% since its launch on October 21st.
