U.S. asset manager BlackRock (BLK) is launching two new exchange-traded funds (ETFs) that give investors exposure to the artificial intelligence (AI) sector.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
BlackRock is tapping into the frenzy around generative AI with its new iShares AI Innovation and Tech Active ETF and iShares Technology Opportunities Active ETF. The two new funds will invest in global AI and technology stocks.
BlackRock, which is the world’s biggest asset manager with more than $11 trillion in assets under management, said the new AI ETFs have an objective to achieve strong returns by investing in companies that are focused on the semiconductors, software, and hardware that drive AI technologies.
Responding to Investor Demand
The AI ETFs are the latest example of BlackRock responding to investor demand. Earlier this year, the company launched popular ETFs that track the spot prices of cryptocurrencies Bitcoin (BTC) and Ethereum (ETH).
AI-focused stocks continue to be some of the best-performing securities, with names such as Nvidia (NVDA) and Taiwan Semiconductor Manufacturing Co. (TSM) having more than doubled in the last 12 months.
BlackRock’s stock has increased 26% so far in 2024.
Is BLK Stock a Buy?
BlackRock stock has a consensus Strong Buy rating among 15 Wall Street analysts. That rating is based on 13 Buy and two Hold recommendations assigned in the past three months. There are no Sell ratings on the stock. The average BLK price target of $1,063.20 implies 6.38% upside potential from current levels.
