BofA Warns AI IPOs Could Lift Concentration to 48% as 30-Year Yields Near 5%
BAC•Bank of America research finds SpaceX and OpenAI IPOs may boost US AI market-cap concentration from 40% to 48%, surpassing past bubble peaks, while April CPI of 3.8% edges toward a 4% danger level linked to market pullbacks. The report also flags 30-year Treasury yields near 5%.
1. BofA Research Warns on AI Bubble and Market Pressure
BofA models show that adding mega IPOs from SpaceX and OpenAI could lift leading AI stocks’ share of US market cap from 40% to roughly 48%, a level not seen since major historical bubbles. With April headline CPI at 3.8% nearing the bank’s 4% risk threshold and 30-year Treasury yields approaching 5%, the report warns that rising discount rates on future growth could pressure Bank of America’s trading commissions and advisory revenues.
