{
  "id": 12229251,
  "title": "Bank of America Says Investors Are Overplaying AI and Underestimating Consumers",
  "url": "https://urgent.news/2026/10/05/bank-of-america-says-investors-are-overplaying-ai-and-underestimating",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-05T21:00:27.000Z",
  "source": {
    "name": "PYMNTS",
    "slug": "pymnts",
    "url": "https://www.pymnts.com/news/artificial-intelligence/2026/bank-of-america-says-investors-are-overplaying-ai-underestimating-consumers/"
  },
  "original_language": "en",
  "account": "Bank of America analysts argue that investors are placing too much emphasis on artificial intelligence-related investments while neglecting the importance of consumer-driven spending, according to a Bloomberg report. The strategists contend that excessive AI spending and reduced discretionary spending are already factored into current investment positions.\n\n\"The 'AI disruptees' – information technology services, consumer finance, and software – are near record lows, and industrial stocks are close to record highs relative to consumer discretionary ones,\" the analysts stated, as reported by Bloomberg.\n\nBank of America strategists, led by Savita Subramaniam, believe that it is \"dangerous to underestimate the appetite of U.S. consumers\" and that capital expenditures may be more accurately priced than previously thought. The Wall Street Journal reported in August that investors and hedge funds have shifted their attention from cryptocurrency to AI investments, contributing to the surge in chipmakers and other AI stocks, similar to the crypto market's performance.\n\nFurthermore, Goldman Sachs Group strategists anticipate AI infrastructure spending by the five largest U.S. hyperscalers to grow to $1.2 trillion by 2027, up from $800 billion in 2023. Following a 54% increase in hyperscaler capital expenditures in 2027, the forecast predicts a 12% growth in 2028, reaching a total of $1.4 trillion. Meanwhile, PYMNTS reported in August that consumers are making small adjustments to protect essential spending, including buying store brands, comparing prices, and adjusting payment timing, with some seeking deals through digital commerce. Visa's Chief Economist, Wayne Best, noted that consumers are continuing to make discretionary purchases despite rising costs, often finding ways to compare prices and stretch their budgets.",
  "summary": "It may be time for investors to pivot from artificial intelligence-linked capital expenditures to consumer-driven spending, Bank of America strategists wrote in a Monday (Oct. 5) note, according to a Bloomberg report. The abundance of AI spending and the shrinking of discretionary spending are already baked into investment positions, with “AI disruptees” such as information […] The post Bank of…",
  "key_points": [
    "Investors overestimate AI, underestimate consumers.",
    "AI-related stocks near record lows, consumer discretionary near record highs.",
    "Capital expenditures for AI infrastructure may be accurately priced."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}