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Blackstone (BX) Draws Fresh Attention As Its AI Push Meets A Valuation Test

Simply Wall St · 1d ago

Blackstone (BX) has drawn fresh attention as president Jon Gray advances a large AI buildout, with the stock down 14% over the past month and Q3 results scheduled for October 22.

Recent trading has been rough for Blackstone, with the share price down 13.64% over the past month and 32.87% year to date. The 1 year total shareholder return has declined 29.03%, while the 3 year total shareholder return remains positive at 24.20%. This suggests that momentum has faded as investors weigh the AI buildout, upcoming Q3 earnings on October 22, and headlines around potential deals in Indian defence and engineering alongside senior leadership changes.

Scan 55 AI infrastructure stocks that echo Blackstone's AI pivot across data centers, power, and chips so you can compare how other infrastructure plays are reacting to the same theme.

Blackstone has a long record of building complex investing platforms. After a sharp share price reset and an aggressive AI push, the real question is whether that engine is being offered at a sensible valuation today.

Most Popular Narrative: 24% Undervalued

At a last close of $106.61 versus a most followed fair value estimate of about $140.55, the current Blackstone price sits well below what that narrative assumes and puts the focus squarely on how its fee engines and AI buildout are expected to convert into future cash flows.

The build out of Blackstone’s AI focused infrastructure, including a data center platform that has risen from US$130b to US$185b of total value in 2026 with scope to scale further if the current leasing and development pipeline is executed, positions the firm to earn performance fees and transaction income linked to these assets.

See why 104 investors see Blackstone as 24% undervalued.

Result: Fair Value of $140.55 (UNDERVALUED)

Still, pressure in parts of Blackstone's real estate portfolio and leadership transitions in private equity and global real estate could challenge the AI infrastructure narrative if conditions worsen.

Find out about the key risks to this Blackstone narrative.

Another View on Blackstone’s Valuation

The analyst narrative leans on future earnings to argue Blackstone is undervalued, with a fair value estimate around $140.55 versus the current $106.61. A different lens focuses on the P/E ratio. BX trades on 24.2x earnings, above its fair ratio of 22.9x yet below both the peer average of 29.8x and the broader US Capital Markets industry on 38.1x. That mix of a premium to its own fair ratio but a discount to peers highlights both valuation risk and potential opportunity. Which side of that trade off appears more realistic to you?

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:BX P/E Ratio as at Oct 2026
NYSE:BX P/E Ratio as at Oct 2026

Next Steps

Mixed signals on Blackstone's value case are clear, so move fast, review the data directly, and weigh both the upside and the red flags in the 3 key rewards and 3 important warning signs.

Looking for more investment ideas beyond Blackstone?

You have seen how one story around Blackstone can shift quickly. Do not stop here when a wider set of opportunities might better match your goals.

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.