BlackRock: AI Trade Expands Beyond 'Magnificent 7' to Semiconductors, Data Centers

BlackRock’s Jay Jacobs predicts the AI trade broadening beyond the Magnificent 7, with investors targeting semiconductors, data centers, and power infrastructure amid rising demand for tactical ETFs. This follows Jefferies' endorsement of the AI rally's sustainability, driven by AI stocks accounting for 80% of S&P 500 YTD gains, 30% rise in 2026 forward earnings since mid-2025, 38.5% EPS CAGR projected for 2026-27 (vs. 11.9% non-AI), and valuation at 25x forward earnings (PEG 0.6) with 86% earnings beats. BlackRock previously noted AI offsetting Middle East oil shock, lifting NVDA to $219.50 as SPY hits 738.70 and QQQ 712.88.