BlackRock (BLK) is in focus after joining Nvidia, Apollo, Blackstone, Brookfield, Goldman Sachs, and KKR in a plan to mobilize more than $500b of third party capital for AI infrastructure.
See our latest analysis for BlackRock.
Recent news around BlackRock’s role in financing AI infrastructure comes as momentum in the stock has picked up, with a 15.35% 1 month share price return and a 3 year total shareholder return of 88.02% indicating gains skewed toward the longer term.
If you are interested in how other companies are positioned around this buildout, it could be a good time to scan the market through our AI infrastructure stocks screener via 55 AI infrastructure stocks
BlackRock now sits at the center of AI and digital infrastructure financing, and the stock has already moved sharply. The business looks strong. The next question is whether that strength is already fully reflected in today’s price.
Most Popular Narrative: 10.3% Undervalued
BlackRock’s most followed narrative points to a fair value of $1,318.96, compared with the last close of $1,182.84, which puts the AI infrastructure announcement in a broader context for long term holders.
BlackRock has entered a new phase of structural growth and earnings quality improvement following the successful execution of its FY 2025 strategic plan. The company is transitioning from a predominantly market beta asset manager into a scaled global financial infrastructure platform, driven by technology (Aladdin + Preqin), private markets, and ETFs.
Want to understand why this narrative sees room above today’s price? It leans heavily on faster growing fee streams and a richer earnings multiple. The details sit in a tight set of revenue and margin assumptions that treat BlackRock less like a traditional asset manager and more like a platform business.
Result: Fair Value of $1,318.96 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are still clear risks to this BlackRock thesis, including weaker than expected technology or alternatives growth, as well as any shift in market or regulatory appetite for AI infrastructure.
Find out about the key risks to this BlackRock narrative.
Another View: What BlackRock’s P/E Ratio Is Telling You
The popular BlackRock narrative points to a fair value above today’s $1,182.84 share price. Yet on a simple earnings multiple, the picture is less clear. BlackRock trades on a P/E of 27.3x, which is below the US Capital Markets industry at 37.5x but above its peer average of 25.3x and its own fair ratio estimate of 20.1x.
This mix of cheaper than the wider industry, but richer than peers and the fair ratio, suggests some optimism is already built into the stock and could limit upside if expectations cool. The question is whether current earnings quality and business mix justify that extra premium, or if investors are leaning too far ahead of the story.
See what the numbers say about this price — find out in our valuation breakdown.
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Next Steps
With BlackRock at the center of both optimism and concern, it helps to move fast and review the details yourself. To weigh up the potential upside against the key issues on your own terms, start by checking the 3 key rewards and 2 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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