Small tech fund gives investors a shortcut to AI profits

The AI Investment Dilemma

Investors chasing AI’s explosive growth face an unenviable choice: overpay for unproven startups or bet on a handful of public giants that may have already peaked. But what if there was a third option—one that balances risk, reward, and even a steady income stream?

Enter BlackRock’s Science and Technology Term Trust (BSTZ), a fund that bridges the gap between high-flying startups and safer public plays. With a mix of cutting-edge tech stocks—including a strategic stake in AI leader Anthropic—BSTZ offers an 8.3% dividend, a rarity for a fund packed with pre-IPO heavyweights. Even more intriguing? Its shares trade 11% below the actual value of its holdings, a discount widened by geopolitical tensions. That gap could vanish fast as Anthropic’s revenue story grows harder to ignore.

Anthropic’s Astonishing Numbers

The sheer scale of Anthropic’s ambitions is staggering. Projected annual revenue? $30 billion—more than the combined sales of Clorox, Ralph Lauren, and a dozen other household names. What’s even more remarkable is the 200% year-over-year growth, a pace that puts even the fastest Silicon Valley startups to shame.

For BSTZ, even a modest position in Anthropic is a game-changer. But the bigger story isn’t about one company—it’s about how AI is permeating industries far beyond tech hubs. From retail to finance, from clothing brands to logistics, AI is no longer just a Silicon Valley play. It’s becoming the backbone of modern business.

The Hidden Winners in AI

While NVIDIA dominates headlines for powering AI servers, its stock has already surged over 1,000%, leaving little room for further explosive gains. The real opportunities may lie elsewhere—in the companies supplying the nuts and bolts of AI infrastructure.

• Memory chips, storage drives, and specialized processors have quietly outperformed NVIDIA over the past year.
• These stocks remain undervalued relative to the explosion in demand.
• The next leg of AI profits could come from traditional industries still figuring out how to integrate the technology—think banks, insurers, and manufacturers.

The bottleneck isn’t the technology itself—it’s how quickly legacy industries adopt it. Two decades ago, the early movers in e-commerce rewrote entire industries. Now, the same pattern is playing out with AI.

Why BSTZ Could Be Your AI Play

Funds like BSTZ give investors a way to capitalize on the AI revolution without betting the farm on a single stock. With an 8.3% dividend and shares trading at an 11% discount, the incentives are as compelling as the underlying growth story.

The takeaway? The best AI investments may not be the ones dominating headlines today—but the funds and infrastructure plays quietly laying the groundwork for tomorrow.