BlackRock Overweights Emerging Markets on AI Hardware Growth

Published: 2026-09-21 04:04:17 |

BlackRock has upgraded emerging-market equities to overweight, reversing its neutral stance from June. The asset manager expects MSCI Emerging Markets earnings to grow by more than 34% over the next 12 months, compared with about 20% for the MSCI USA Index. Emerging-market stocks trade at roughly 10 times forward earnings, versus nearly 20 times for US equities. BlackRock is focusing on AI hardware “picks-and-shovels” companies that produce semiconductors, memory chips and physical infrastructure rather than AI models. South Korea and Taiwan are central to the thesis because of their roles in the global semiconductor supply chain. BlackRock cited South Korea’s deleveraging after a July sell-off and improving earnings momentum as reasons for changing its view. The strategy also covers Latin American commodities, power and infrastructure, which could benefit from rising AI-related demand. The shift may support emerging-market technology and industrial shares and improve broader risk appetite. For crypto traders, it is an indirect signal rather than a cryptocurrency recommendation. Monitor Asian equities, AI-linked assets, the US dollar, commodity prices, liquidity and Taiwan-related geopolitical risks. Renewed leverage in South Korea and high AI hardware valuations remain key risks.

Neutral

The news has no direct impact on any cryptocurrency because no specific coin, token or blockchain project is mentioned. In the short term, BlackRock’s stronger outlook for emerging-market equities could improve global risk appetite and support liquidity across technology, commodity and industrial markets. That could create a mildly favourable backdrop for crypto sentiment, but the effect is indirect and likely limited. Over the longer term, institutional interest in AI hardware, semiconductors and infrastructure may support broader investment in AI-related digital assets. However, equity valuation risks, Taiwan-related geopolitical tensions, a stronger US dollar or renewed leverage in South Korea could reduce risk appetite and pressure speculative assets. Historical reactions to cross-asset allocation changes suggest that crypto prices are more likely to respond to subsequent movements in liquidity, equities and the dollar than to this announcement itself. The appropriate crypto-market classification is therefore neutral.