AI trade will continue to expand far beyond 'Magnificent 7' stocks: BlackRock

• The AI trade is broadening to include digital infrastructure, semiconductors, and power infrastructure, beyond just the 'Magnificent 7' tech stocks.
• Investors are increasingly utilizing ETFs, including active and liquid alternative strategies, to capture diverse themes and build portfolio resilience.
• The traditional stock-bond diversification model is being re-evaluated, leading to greater interest in alternatives like buffer ETFs, Bitcoin, and Gold for risk management and returns.

BlackRock's Jay Jacobs highlights the expanding AI investment theme beyond the 'Magnificent 7' to digital infrastructure, semiconductors, and power. He notes a growing demand for tactical and liquid alternative ETFs, as investors seek diversified sources of return and portfolio resilience in uncertain markets, moving beyond traditional stock-bond models.