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BlackRock AI fund strategic accretion ‘significant,’ says Morgan Stanley

After BlackRock (BLK) announced the launch of a $30B artificial intelligence investment fund in partnership with Microsoft (MSFT) and MGX focused on building data centers and energy projects to meet the growing demand for computing power, Morgan Stanley analyst Michael Cyprys says this would be an “impressive” first time fund for BlackRock in this arena and one of the largest funds raised in this space, which speaks to the power of the company’s brand, relationships and platform and supports the firm’s Overweight call on the stock. The firm, which also notes that Nvidia (NVDA) will be offering expertise in AI data centers and AI factories to benefit the AI ecosystem, sees potential for 60c-80c of incremental EPS from the fund, worth 1%-2% to its 2025 EPS estimate of $49.34, calling the “financial accretion modest, but strategic accretion significant.”

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