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BlackRock Returns to Overweight Emerging-Market Stocks on AI Scarcity and Earnings Strength

September 14, 2026 at 22:10 EDT

Finance
Infra & Chips

BlackRock Investment Institute has moved emerging-market equities back to overweight, saying stronger earnings, cheaper valuations and exposure to scarce AI infrastructure resources now justify more risk. The shift reverses a June move to neutral and frames South Korea, Taiwan and Latin America as key ways to invest in the physical bottlenecks behind the AI buildout.

Sep. 15, 2026 · BlackRock

Emerging markets rejoin the AI trade

BlackRock moved emerging-market equities back to overweight, pointing to stronger earnings, cheaper valuations and exposure to scarce AI infrastructure inputs.

Forward EPS growth

34%+

MSCI Emerging Markets Index

Forward P/E

10x

About half the U.S. multiple

Earnings growth clears a higher bar

Consensus 12-month forward EPS growth: emerging markets lead the U.S. comparison.

34%+Emerging markets

20%MSCI USA

Supply chainTaiwan and South Korea anchor chips, memory and hardware.

ResourcesLatin America adds exposure to power, materials and infrastructure.

LimitsAI earnings, leverage and long rates remain key risks.

Bull case

Cheaper markets offer another route into AI infrastructure demand and stronger earnings growth.

Risk case

Broad EM exposure may still concentrate portfolios around the same AI hardware cycle.

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