BlackRock identifies artificial intelligence as the dominant market force heading into 2026, maintaining its overweight position on U.S. stocks despite infrastructure challenges. The world's largest asset manager warns that AI data centers could consume up to 25% of current U.S. electricity demand within five years.
What Happened: Investment Strategy
BlackRock released its 2026 market outlook highlighting AI as the most significant mega force reshaping global markets, according to the firm's latest report.
The asset management giant maintains overweight positions on U.S. stocks and AI-related investments, citing robust earnings expectations and unprecedented capital expenditure buildouts.
"We've long argued we're in a world of structural transformation shaped by a few mega forces, including geopolitical fragmentation, the future of finance and the energy transition.
But the most obvious now is AI, with a buildout of a potentially unprecedented speed and scale," BlackRock stated in the report.
The firm noted that capital-intensive growth has replaced capital-light models, fundamentally altering the investment landscape. "This shift to capital-intensive growth from capital-light is profoundly changing the investment environment and pushing limits on multiple fronts – physical, financial and socio-political," the report said.
BlackRock attributed this year's record U.S. stock market performance partly to AI advancement. "AI is the dominant mega force right now, helping propel U.S. stocks to all-time highs this year," according to the firm.
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Why It Matters: Infrastructure Constraints
BlackRock projects AI data centers could consume 15-20% of current U.S. electricity demand by 2030, with some estimates reaching 25%.
The firm identified this energy requirement as a critical test for power grids, fossil fuel industries and materials sectors.
"Rising power demand collides with a backlog of projects waiting to connect with the electric grid and generally slow permitting in the West," BlackRock warned.
The asset manager cautioned that infrastructure bottlenecks could force companies to scale back capital expenditure plans if energy constraints intensify.
"The next phase may be more about energy and resolving bottlenecks," the report concluded. BlackRock acknowledged that while aggregate capital expenditure may prove beneficial, individual companies face uncertain returns on their AI investments.
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