In its latest research report released on Monday, BlackRock’s Chief Investment Strategist Wei Li and his team officially raised their rating for emerging-market equities to “Overweight.” This statement directly reverses their cautious stance from June this year, when they downgraded emerging markets to “Neutral,” with a key focus on the core supply-chain resources that support global AI buildout.
BlackRock believes that South Korea and Taiwan, China are at the core nodes of semiconductor and memory-chip manufacturing, while Latin American markets hold key commodities that are essential for AI infrastructure. Concerns in the market about leverage being too high and positions being overly concentrated have improved materially after the sharp selloff and deleveraging in July. The risk-reward profile has become noticeably better, and corporate earnings expectations are once again drawing institutional capital back in.
In the traditional finance sphere, the shift by major players indicates that global capital is not simply clinging to U.S. tech giants. Instead, it is starting to spread along the AI industry chain toward emerging markets with valuations that may be more resilient and with upstream access to hardware and raw materials. This could channel some incremental capital into Asian and Latin American equity markets, while also providing interim support for commodity demand.
For the crypto market, this reflects institutions’ continued bets on the long-term narrative of the AI theme. As funds look across different risk assets for targets related to AI infrastructure, AI-narrative tokens such as $NEAR , $FET , as well as segments like compute power and decentralized physical infrastructure (DePIN), may also continue to maintain high levels of attention and liquidity competition. Going forward, it may be worth paying closer attention to the overall rhythm of capital rotation.
#BlackRock #EmergingMarkets #AI
BlackRock believes that South Korea and Taiwan, China are at the core nodes of semiconductor and memory-chip manufacturing, while Latin American markets hold key commodities that are essential for AI infrastructure. Concerns in the market about leverage being too high and positions being overly concentrated have improved materially after the sharp selloff and deleveraging in July. The risk-reward profile has become noticeably better, and corporate earnings expectations are once again drawing institutional capital back in.
In the traditional finance sphere, the shift by major players indicates that global capital is not simply clinging to U.S. tech giants. Instead, it is starting to spread along the AI industry chain toward emerging markets with valuations that may be more resilient and with upstream access to hardware and raw materials. This could channel some incremental capital into Asian and Latin American equity markets, while also providing interim support for commodity demand.
For the crypto market, this reflects institutions’ continued bets on the long-term narrative of the AI theme. As funds look across different risk assets for targets related to AI infrastructure, AI-narrative tokens such as $NEAR , $FET , as well as segments like compute power and decentralized physical infrastructure (DePIN), may also continue to maintain high levels of attention and liquidity competition. Going forward, it may be worth paying closer attention to the overall rhythm of capital rotation.
#BlackRock #EmergingMarkets #AI