By Surbhi Jain
Publication Date: 2026-05-04 14:46:00
The AI trade has been straightforward. Follow the demand, follow the chips, follow the cloud.
But BlackRock, Inc (NYSE:BLK) is starting to point elsewhere.
The firm argued in an April 30 note that “equity markets are growing more selective around AI exposure this year” with investors beginning to differentiate between companies that benefit from AI and those that could be disrupted by it.
From Chips To ‘HALO’ Stocks
That shift is giving rise to a less obvious theme: HALO.
Short for ‘Heavy Assets, Low Obsolescence’, HALO refers to businesses built on physical infrastructure that is difficult to digitize away. BlackRock describes these as companies with “capital-intensive physical infrastructure that is difficult or impossible to digitize,” where AI is more likely to enhance efficiency than replace the core business.
In plain terms: not everything gets disrupted. Some things get optimized.
Why Paint Is Suddenly Part Of The AI Story
That’s where PPG Industries, Inc (NYSE:PPG) enters.
BlackRock points to the company as a case study of how AI is being used outside traditional tech. “We are already seeing live examples of companies in these areas leveraging AI to create new revenue-generating ideas and enhance the efficiency of their physical assets,” the firm writes.
One example: PPG built a database of its products and their chemical properties. Using AI, it developed a fast-drying automotive clear coat.
The model didn’t just speed up testing—it suggested a new combination of…
