Full Signal BlackRock’s $14 trillion AI investment strategy REVEALED | Gargi Chaudhuri
Jan 15, 2026
Gargi Chaudhuri, BlackRock's Chief Investment and Portfolio Strategist for the Americas, shares insights on the evolving AI landscape and its implications for investment strategies. She discusses BlackRock's optimistic projections for AI by 2026, while cautioning against overvaluation and crowding risks. Gargi also highlights the importance of diversifying AI investments, explores the impact of macroeconomic factors, and addresses client concerns about sourcing income and geopolitical risks. Don't miss her thoughts on Bitcoin's role in portfolios!
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AI Rally Fueled By Earnings, Not Multiple Expansion
- AI stocks became cheaper in 2025 because earnings grew faster than prices, lowering forward P/E from ~29 to ~26.5.
- BlackRock found AI-associated top names grew net income ~30% vs ~3% for non-AI peers over three years.
Don't Rely On P/E Alone
- Factor valuation into decisions but also examine earnings growth and free cash flow before sizing AI exposure.
- Use multiple data points beyond P/E to judge whether a high-growth name is still reasonable to own.
AI Is Dominant But Not Exclusive
- AI is now a leading theme but not the only opportunity; macro improvements are opening other areas.
- Many portfolios remain underweight large-cap growth and AI exposure, so allocations differ across investors.