BofA overweight 'anti-AI' food and beverage stocks
XLP•BofA says it is overweight food and beverage stocks and underweight semiconductors, citing signs that markets are becoming less willing to fund AI infrastructure investment.
1. BofA’s positioning
BofA analysts said they remain concerned about the outlook for AI capital spending and are overweight “anti-AI” food and beverage stocks, underweight semiconductors and cyclicals versus defensives, and negative on the STOXX Europe 600.
2. AI investment warning signs
BofA cited Australian data centre developer Firmus withdrawing its planned IPO, neocloud CoreWeave’s 2032 unsecured bond yields touching 15%, and South Korean neocloud Elice falling more than 30% below its IPO price on debut before recovering those declines.
