| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 1.5% | 1.5% | 0% |
| 2025 | 2024 |
|---|---|
| 0.8% | 19.8% |
BlackRock believes technology disruption is reshaping entire industries, creating a strong structural backdrop for long-term growth in the sector. The Trust takes a unique approach by blending U.S. and non-U.S. technology stocks with private investments, holding 21 private companies representing 32% of the portfolio. During Q4 2025, the Trust increased allocations to hardware, internet, semiconductors, and software, driven by continued momentum across the AI infrastructure stack and attractive valuations in select platforms. AI investment is expanding beyond the infrastructure-heavy phase toward scaled adoption at the application layer, with hyperscalers and sovereign governments driving compute capacity expansion. The technology sector remained a primary market driver in 2025, supported by easing macro headwinds and sustained investment in cloud infrastructure. Key risks include elevated interest rates pressuring private valuations and prolonged exit strategies. The Trust seeks companies with strong AI monetization strategies and durable competitive moats where valuations appear attractive relative to long-term prospects.
BlackRock believes technology disruption is reshaping entire industries, creating a strong structural backdrop for long-term growth in the sector, with the Trust investing in both publicly traded and private companies to capture opportunities across the AI infrastructure stack and enterprise adoption.
The technology sector remained a primary market driver in 2025, supported by easing macro headwinds, accelerating enterprise AI adoption, and sustained investment in cloud and data center infrastructure. As of 12/31/2025 sector fundamentals remain strong, underpinned by growth in AI, cloud computing, networking and manufacturing. We are seeking companies with strong AI monetization strategies and durable competitive moats, particularly where valuations appear attractive relative to long-term prospects.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 8 2026 | 2025 Q4 | ATE, CIEN, CLS, CRDO, FN, LITE, NVDA, TSEM | AI, Cloud, growth, infrastructure, private equity, semiconductors, technology | - | BlackRock's technology trust combines public and private investments to capture AI infrastructure growth and enterprise adoption. The fund increased semiconductor, software, and hardware allocations during Q4 2025, benefiting from strong AI-driven demand. With 32% in private companies, the trust targets companies with AI monetization strategies and competitive moats as the sector transitions from infrastructure build-out to application-layer adoption. |
| Nov 25 2025 | 2025 Q3 | AAPL, ALAB, AMZN, APP, CLS, CRDO, GOOGL, LITE, META, MSFT, NVDA, TSLA | AI, growth, hardware, private equity, semiconductors, software, technology | - | BSTZ returned 11.6% in Q3 2025 as technology rebounded on AI optimism and tariff relief. The Trust reallocated toward AI infrastructure and chip companies while trimming semiconductor equipment and fintech exposure. Private holding Databricks hit $100B valuation as top contributor. Robust AI, cloud, and quantum fundamentals support continued growth despite tariff uncertainties. |
| Aug 27 2025 | 2025 Q2 | 000660.KS, CLS, MELI, NET, NVDA, SNOW, SPOT | AI, Cloud, growth, private equity, semiconductors, technology | - | BlackRock's technology-focused closed-end fund delivered strong Q2 2025 returns of 19.5% on NAV, led by AI beneficiaries NVIDIA and SK Hynix. The fund combines public tech stocks with 23% private equity allocation, though private valuations face headwinds from elevated rates. Management is selectively adding AI monetization plays while the sector benefits from robust fundamentals and multi-year secular growth trends. |
| Dec 31 2024 | 2024 Q4 | ALAB, CRDO, NVDA, RDDT, SPOT, TSLA | AI, Closed-End Fund, Covered Calls, semiconductors, technology | - | |
| Sep 30 2024 | 2024 Q3 | 000660.KS, MELI, MPWR, NVDA, SNPS | AI, Covered Calls, growth, semiconductors, technology | - | Technology-focused closed-end fund with 9.93% NVIDIA allocation and covered call income strategy generating 13.37% distribution rate. Strong one-year NAV returns of 15.99% but trading at 10.82% discount. Concentrated technology exposure creates volatility risk while covered calls limit upside participation but provide steady income generation. |
| Jun 30 2024 | 2024 Q2 | 000660.KS, CRDO, NVDA, PSTG, SNPS | Call Writing, growth, Options, semiconductors, SMID Cap, software, technology | - | BlackRock's technology-focused term trust concentrates in semiconductors (35.9%) and software (24.4%), led by NVIDIA at 10.3%. The fund employs call option writing on 18.8% of holdings and targets 12% annual distributions through a managed distribution plan. Current distributions are 100% return of capital with 28.4% allocation to private investments. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
OilThe region's long oil exposure contributed to meaningful underperformance relative to MSCI EM Index in 2025. The outlook for 2026 suggests a continuation of lower oil prices, which remains a headwind for MENA markets. |
Oil Energy Commodities |
Infrastructure SpendingThe recalibration of ambitious giga-projects in Saudi Arabia signals a more pragmatic approach to capital spending and resource allocation. This shift enhances policy credibility and ensures sustainable public finances. |
Infrastructure Saudi Arabia Capital Spending | |
Capital MarketsCapital market relevance continues to be a priority for regional governments. This should translate into a broadly supportive market environment, characterized by investor-friendly policies and improved market investability. |
Capital Markets Policy Investability | |
LNGIn Qatar, the manager expects momentum to build later in the year as the country approaches its LNG windfall in 2027. This represents a key catalyst for the Qatar overweight position. |
LNG Qatar Natural Gas | |
| 2025 Q3 |
AIThe technology sector rebounded strongly in Q3 2025 driven by renewed AI optimism and deepening CAPEX commitments. AI infrastructure cycle is being driven by rollout of next-generation GPUs and significant ramp-up in compute capacity by hyperscalers and sovereign governments. National AI initiatives are now matching or exceeding traditional hyperscaler investments, fueling robust demand for advanced semiconductors and networking technologies. |
CAPEX GPUs Hyperscalers Infrastructure Semiconductors |
SemiconductorsThe Trust strategically reallocated capital to the hardware backbone of AI and digital transformation, adding to select names that provide power to AI companies and high conviction companies across the AI chip value chain. Semiconductor subsector faced challenges from macroeconomic factors related to trade tensions and tariffs, particularly impacting large global hardware companies with complex supply chains. |
AI Chips Hardware Supply Chain Trade Tensions Tariffs | |
CloudMulti-year secular growth trends in AI, cloud, and quantum computing support the sector's robust fundamentals. Cloud infrastructure investments continue to drive demand for advanced technologies and supporting infrastructure. The second-half of 2025's AI infrastructure cycle includes significant compute capacity expansion by cloud providers. |
Infrastructure Compute Quantum Computing Secular Growth Technology | |
| 2025 Q2 |
AIThe technology sector rebounded strongly in Q2 2025 as AI-driven earnings accelerated. The recent market recovery has reaffirmed the value of high-quality AI enablers and application leaders. The team is selectively adding to companies with AI monetization strategies as the AI infrastructure buildout continues to shape market dynamics. |
AI infrastructure AI monetization AI chips AI targeting |
SemiconductorsNVIDIA was the largest contributor to relative returns backed by record-high demand for AI chips and positioning near the top of global tech valuations. SK Hynix also contributed due to surging demand for high-bandwidth memory chips powered by AI infrastructure buildouts and a favorable industry outlook. |
AI chips Memory chips Semiconductor equipment High-bandwidth memory | |
Private CreditBTX held 29 private companies accounting for 23% of the portfolio. Private investments have been pressured by the elevated interest rate environment affecting small- and mid-cap public equities. The team continues to seek opportunities to harvest the illiquidity premium by taking advantage of the closed structure. |
Private equity Illiquidity premium Private valuations Exit strategies | |
CloudThe sector's underlying fundamentals remain robust, supported by multi-year secular growth trends in AI, cloud, and quantum computing. Cloudflare detracted from active returns as the cloud services provider's stock rose on robust financial performance including accelerated revenue and customer growth. |
Cloud services Cloud infrastructure Quantum computing | |
| 2024 Q3 |
AIThe fund's largest holding is NVIDIA Corporation at 9.93% of the portfolio, representing significant exposure to artificial intelligence and accelerated computing infrastructure. The technology focus aligns with AI development and advancement themes. |
NVIDIA Computing Semiconductors Infrastructure |
SemiconductorsMultiple semiconductor holdings including NVIDIA, SK Hynix, and Synopsys represent substantial exposure to the semiconductor industry. These companies span GPU computing, memory production, and electronic design automation software. |
Memory Design Manufacturing Computing | |
| 2024 Q2 |
SemiconductorsThe fund maintains significant exposure to semiconductors at 35.9% of portfolio assets, well above benchmark weighting of 23.1%. Top holdings include NVIDIA at 10.3%, PsiQuantum at 4.5%, SK Hynix at 3.0%, SambaNova at 2.3%, and Credo Technology at 2.2%. |
NVIDIA Memory Chip Designers Semi Equipment GPUs |
AIThe portfolio shows concentrated exposure to AI-related companies through holdings in NVIDIA, Databricks, PsiQuantum, and SambaNova. These companies represent key players in AI infrastructure, software platforms, and quantum computing applications. |
NVIDIA Databricks Cloud Data Centers Machine Learning | |
SoftwareSoftware represents 24.4% of portfolio assets, below the benchmark weighting of 37.0%. Key holdings include Databricks at 6.7% and Synopsys at 3.0%, focusing on enterprise software and development tools. |
Databricks Synopsys Enterprise Software Dev Tools SaaS |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| CIEN | Ciena, a networking systems company, saw shares increase meaningfully during the quarter amid optimism around hyperscaler and AI-related demand. The company has also benefited from growing cloud spending, which has supported its pluggables and data interconnect business. |
| CLS | I was short what I think are low quality names that have benefited from a huge Capex run up in datacenters but offer services that will get commoditized and are trading on very high earnings multiples on top of really above historical margins (TSSI STRL CLS ORCL VRT TGEN). |
| CRDO | During the quarter, we initiated a position in Credo Technology. Credo is a high-growth semiconductor company that we view as a more diversified way to gain exposure to strong trends in AI-connectivity. |
| FN | Fabrinet Information Technology 1.6 |
| LITE | Lumentum is a leading supplier of lasers to the AI ecosystem. The stock rallied due to strong demand for its products in hyperscale and AI data centers, along with general apparent optimism surrounding AI infrastructure stocks. |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| TSEM | Tower Semiconductor is a foundry of analog semiconductor solutions. During the quarter, management reported strong results in its optical semiconductor business, leading management to pull forward the timeline for achieving its long-term goals. |
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