BlackRock’s global chief investment strategist says three major US tech IPOs—SpaceX, OpenAI, and Anthropic—could collectively absorb around $200 billion from the market.
The artificial intelligence (AI) boom and strong corporate earnings growth are expected to continue driving stock market gains, although potential risks such as rising interest rates remain, according to Wei Li, BlackRock’s Global Chief Investment Strategist.
Speaking exclusively to , Li outlined her views on asset allocation and explained why she remains optimistic about US equities, even as they continue to trade at record highs.
She discussed the impact of the US-Iran conflict on markets and inflation, as well as how the expected public offerings of three major US technology companies this year—SpaceX, OpenAI, and Anthropic—could pose a near-term test for the market.
“We are currently risk-on due to strong earnings momentum, particularly in the US, driven by the AI buildout,” she said in the interview last week.
The buildout includes the global expansion of data centres, with Li estimating that related spending could reach $6 trillion—and continue rising—by the end of the decade.
She added that pressure from the Iran conflict on supply chains, especially energy, has accelerated an existing market theme where AI investment increasingly intersects with demand for energy and raw materials such as copper.
BlackRock Investment Institute strategists recently noted their preference for “electro tech,” which includes batteries, power electronics, and electric motors central to AI, energy, infrastructure, and defence. The expansion of AI is strengthening the connection between technology and key sectors such as energy, utilities, and infrastructure.
Preferring equities
“We favour growth-oriented exposures—equities in general, as well as US, tech, and emerging market equities in particular—over credit and global government bonds, especially US long-duration Treasuries,” Li said.
She noted that the pace of AI investment is unprecedented, moving faster than previous industrial revolutions.
A key shift, she said, is that large technology companies no longer generate as much free cash flow as before, as they are now investing heavily in AI and increasingly tapping debt markets to fund expansion. While investors were initially concerned about the scale of spending, she said strong earnings momentum has eased those worries for now.
“This is why we are overweight emerging market and US equities—they are the bright spot in terms of earnings upgrades and strength,” she said.
She added that US IT sector earnings growth expectations for 2026 have been revised sharply higher, from about 30% at the start of the year to around 44%, while emerging market earnings growth forecasts have also been upgraded to just under 40%.
The conflict has also heightened focus on energy security.
“Everybody is going to be talking about it—companies, governments—energy security, resource nationalism, data centre security, and supply chain resilience,” she said, calling it a long-running theme now being accelerated by current events.
She added that this supports an “all-of-the-above” energy strategy spanning renewables, oil, and gas, with utilities and power grids playing a central role in the energy transition.
Interest rates could rise
Disruptions to energy supply and shipping through key routes such as the Strait of Hormuz have tightened global supply conditions and pushed prices higher. AI-driven data centre demand is adding further inflationary pressure, which in turn has helped drive up interest rates.
Li expects rates could move higher.
She noted that government bond yields have risen even during periods of market stress, whereas traditionally they would fall as investors sought safe havens. This, she said, suggests Treasuries may no longer be as effective as portfolio diversifiers as they once were.
“This reflects persistent inflationary pressures in a world shaped by supply constraints,” she said, adding that investors should now demand higher yields for long-duration bonds. She prefers higher-quality, shorter-duration bonds instead.
A rising-rate environment, she warned, could pose challenges for equity markets.
Pick spots carefully
Li said investors must be more selective.
“If future cash flows are rising faster than yields, equities can still outperform,” she said. “But this is an environment where we need to be more discerning. It’s not a rising tide lifting all boats.”
She also pointed to three major US tech IPOs expected this year—SpaceX, OpenAI, and Anthropic—as a near-term positive signal for market confidence, but also a potential liquidity drain of around $200 billion once they launch.
“The estimates suggest about a $200 billion liquidity impact,” she said, noting this comes alongside increased corporate debt issuance, which could further tighten liquidity conditions.
That, she said, could influence near-term market direction, even as long-term returns remain driven by fundamentals.
She added that a key investment theme for 2026 is “Micro is Macro,” reflecting how massive AI-related spending is now shaping broader economic trends.
“One of our key themes is called ‘Micro is Macro,’” she said. “AI spending is large enough that company-level investment is now driving macroeconomic outcomes—something quite different from previous cycles dominated by monetary and fiscal policy.”
