‘Doubts around the AI revolution are emerging,’ BofA says, as the market sees a ‘double-edged sword’ that could ‘cannibalize’ profits

For over a year, financial markets have enthusiastically priced the artificial intelligence boom as an unmitigated “upside-only” event for asset prices, with the typically bullish analysts at Bank of America Research mostly agreeing. But on Friday, the bank’s European equity strategy team, which admittedly leans more defensive, warned that the unbroken euphoria is officially cracking in early 2026.

In a note to clients reviewed by Fortune, BofA strategists declared that “doubts around...