BlackRock Says China AI Opportunities Are Stock-Specific

BlackRock Investment Institute says the most attractive opportunities in artificial intelligence are likely to be found in individual stocks rather than in a broad China trade. In a report published Monday, the firm kept a neutral view on Chinese equities while remaining overweight on U.S. stocks. It said China has strengths in parts of the AI supply chain, including manufacturing and batteries, but that those advantages do not automatically lead to strong equity returns. BlackRock pointed to recent market performance as evidence of the divide: some Chinalinked technology shares have risen, while the broader MSCI China index has fallen. The firm said cheaper opensource AI could help adoption, but that does not necessarily mean profits for AI providers. It added that it sees potential in socalled physical AI, such as robotics and other hardware applications, and still favors the U.S. as the main market for identifying longterm AI winners.