Cooling Enthusiasm for Big Tech

Investors betting on artificial intelligence in 2026 are pivoting away from major tech stocks and toward the companies that power the physical infrastructure behind AI, according to BlackRock's Investment Directions report. The survey of 732 client firms across Europe, the Middle East, and Africa found only 20% viewing largest U.S. tech companies as top AI opportunities, while over half favor electricity suppliers and 37% infrastructure providers.

Companies like Microsoft, Meta, and Alphabet are investing billions in data centers, but concerns over capital returns and borrowing costs are driving diversification.

Physical Constraints as Investment Driver

AI's growth hinges on solving infrastructure bottlenecks, particularly electricity for data centers. BlackRock notes U.S. electricity demand surging with data center consumption at 20% annual growth through 2030. A Schneider Electric survey shows 92% of developers citing power procurement as the top challenge.

Investors Dismiss Bubble Fears

Despite the shift, just 7% see AI as a bubble. BlackRock projects $5-8 trillion in global AI capex by 2030, maintaining a pro-risk stance while advocating active management.