Until the AI wave crashes
QQQ•BofA Global Research strategists said AI dominated client discussions, accounting for 80% of conversation time on recent trips, and most clients planned to stay positioned for near-term AI capital spending growth.
1. AI dominates discussions
BofA Global Research strategists said 80% of discussion time during recent trips to the United States, Switzerland and Scandinavia focused on the AI capital spending boom, compared with 15% on interest rates and 5% on the Middle East conflict. Clients shared concerns that competition among AI models could lower prices and undermine returns on large infrastructure investments.
2. Clients remain positioned
Most clients said they planned to stay positioned for a continued near-term AI capital spending ramp-up, while many were prepared to change their positioning if signs emerged that the boom was running out of fuel. The strategists said they saw few signs that the spending cycle was about to turn.
