Bank of America analyst: If the AI boom fades, defensive sectors could shine.

BlockBeats News, June 25 - Bank of America strategist Sebastian Raedler warned investors to consider defensive sectors such as consumer staples and pharmaceuticals if AI spending proves unsustainable.

He believes that as cheaper models emerge and customers resist higher prices, AI profitability may decline. Although optimistic forecasts from Micron and Qualcomm have boosted market sentiment, Raedler said that if the AI trade weakens, bonds and defensive stocks could perform better.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned