A recent analysis highlights a significant disconnect between the software sector’s current performance and the growing positive impact of AI on job creation. The BlackRock Science and Technology Term Trust (BSTZ) is positioned for growth, offering a 7.8% dividend yield and a 21% total return for 2025, despite trading at a 9.3% discount to net asset value. This trend appears even as the iShares Expanded Tech-Software Sector ETF (IGV) struggles, indicating ongoing investor pessimism despite favorable market indicators.
Key data shows that 1.3 million new AI-enabled jobs have emerged globally in the past two years, with a notable rise in new business creation in sectors adopting AI technologies. The Wall Street Journal corroborates this growth, citing spikes in jobs stemming from data-center construction and a demand for tech-savvy workers.
Overall, reports suggest a shift in narrative surrounding AI’s impact on employment, moving from fear of job loss to recognition of AI as a job creator. The strong performance of BSTZ underscores a potential opportunity for investors to leverage this growth while navigating the current software market slump.
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