BAI - ETF AI Analysis

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iShares A.I. Innovation and Tech Active ETF (BAI)

Rating:61Neutral

Price Target:―

BAI, the iShares A.I. Innovation and Tech Active ETF, has a solid overall rating driven mainly by high‑quality leaders like Alphabet, Nvidia, Microsoft, and TSMC, which all show strong financial performance, positive earnings commentary, and powerful positions in AI, cloud, and advanced chips. These strengths are partly offset by valuation concerns and some mixed or bearish technical signals across several holdings, as well as weaker names like Lumentum that face financial and operational risks. The main risk factor is the fund’s heavy concentration in AI-focused tech and semiconductor companies, which can make it more sensitive to swings in that sector and to changes in growth expectations.

Positive Factors

Strong AUM Base

The fund manages a large pool of assets, suggesting solid investor interest and stability.

Leading AI and Tech Holdings

Several top positions like TSMC, Lam Research, Tower, Fabrinet, Celestica, AMD, and Alphabet have shown strong recent performance, helping support the ETF’s returns.

Focused Tech Exposure

A high weight in technology and related sectors gives investors targeted exposure to companies driving AI and innovation.

Negative Factors

High Concentration in Top Holdings

A small group of stocks makes up a meaningful share of the portfolio, which increases the impact if any of them perform poorly.

Mixed Performance Among Key Names

Important holdings such as Nvidia, Broadcom, and Microsoft have shown weaker recent performance, which can drag on overall fund results.

Above-Average Expense Ratio

The fund’s fee is relatively high for an ETF, which can slowly reduce net returns over time compared with lower-cost options.

BAI vs. SPDR S&P 500 ETF (SPY)

AUM8.69B

RegionGlobal

Expense Ratio0.55%

Beta1.60

IssueriShares

Inception DateOct 21, 2024

Dividend Yield1.73%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume1,795,395

30 Day Avg. Volume1,827,635

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

42.33

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering37

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

BAI Summary

The iShares A.I. Innovation and Tech Active ETF (BAI) is a fund that focuses on companies involved in artificial intelligence and robotics, rather than tracking a traditional index. It mainly holds U.S. technology stocks and is actively managed, meaning professionals pick the companies they believe will benefit most from the growth of AI. Well-known holdings include Nvidia and Microsoft. Someone might invest in this ETF to seek long-term growth from the expanding use of AI across many industries. A key risk is that it is heavily concentrated in tech, so its price can rise and fall more than the overall stock market.

How much will it cost me?The iShares A.I. Innovation and Tech Active ETF (BAI) has an expense ratio of 0.55%, which means you’ll pay $5.50 per year for every $1,000 invested. This is higher than average because it’s actively managed, meaning professional managers select stocks to try to outperform the market.

What would affect this ETF?The iShares A.I. Innovation and Tech Active ETF could benefit from growing global demand for AI and robotics technologies, as well as advancements in semiconductor and software innovation driven by top holdings like Nvidia and Microsoft. However, it may face challenges from regulatory scrutiny on AI development, potential economic slowdowns impacting tech spending, or rising interest rates that could pressure growth-focused investments. Its global exposure and focus on transformative industries position it well for long-term growth but also make it sensitive to sector-specific risks.

BAI Top 10 Holdings

BAI is very much an AI-and-chips story, with Nvidia, Broadcom, TSMC, Lam Research, AMD, and other hardware names in the driver’s seat. Recently, Lam Research, TSMC, and AMD have been the standouts, giving the fund a solid boost, while Nvidia has been more steady than spectacular and Broadcom has been lagging a bit, acting like a small brake on returns. Alphabet adds a rising Big Tech AI platform to the mix, and with holdings spread across the U.S. and global chipmakers, the fund is both tech-heavy and geographically diversified.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	7.61%	$664.36M	$4.44T	31.66%	76 Outperform
AVGO	Broadcom	6.43%	$561.50M	$1.54T	39.53%	76 Outperform
TSM	TSMC	4.96%	$432.59M	$1.58T	79.68%	81 Outperform
GOOGL	Alphabet Class A	4.39%	$382.67M	$3.70T	65.05%	85 Outperform
LRCX	Lam Research	4.20%	$366.14M	$294.12B	184.63%	77 Outperform
6857	Advantest	3.82%	$333.61M	¥18.93T	201.46%	75 Outperform
TSEM	Tower	3.28%	$285.94M	$14.39B	170.29%	76 Outperform
LITE	Lumentum Holdings	2.99%	$260.51M	$40.18B	624.43%	61 Neutral
FN	Fabrinet	2.91%	$253.67M	$17.75B	122.18%	78 Outperform
MU	Micron	2.79%	$243.70M	$463.33B	313.64%	79 Outperform

BAI Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

34.19

Positive

100DMA

34.22

Positive

200DMA

31.39

Positive

Market Momentum

MACD

0.10

Negative

RSI

50.86

Neutral

STOCH

75.11

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For BAI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 34.55, equal to the 50-day MA of 34.19, and equal to the 200-day MA of 31.39, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 75.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAI.

BAI Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
BAI	―	―	$8.69B	0.55%	―
ARKK	―	―	$6.09B	0.75%	―
ARKQ	―	―	$1.98B	0.75%	―
ARKW	―	―	$1.55B	0.76%	―
FWD	―	―	$1.52B	0.65%	―
ARKG	―	―	$1.23B	0.75%	―

Performance Comparison

BAI

iShares A.I. Innovation and Tech Active ETF

34.56

6.44

22.90%

ARKK

Ark Innovation Etf

―

ARKQ

ARK Autonomous Technology & Robotics ETF

―

ARKW

ARK Next Generation Internet ETF

―

FWD

AB Disruptors ETF

―

ARKG

ARK Genomic Revolution ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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