BlackRock Science and Technology Term Trust on Elite Material
Thesis
Elite Material represented 3.0% of net assets and was one of BSTZ's ten largest holdings at quarter-end. BlackRock is emphasizing hardware, infrastructure and enabling technologies that benefit directly from expanding AI workloads and deployment. The broader thesis is that AI adoption has moved beyond experimentation and that selected technology companies may have multi-year growth potential that is not yet reflected in valuations.
“AI markets have moved beyond the initial infrastructure-led buildout”
Key risks
- General changes in market sentiment toward science and technology companies
- Science and technology companies may underperform the broader market