Bank of America Warns AI Investment Cycle Could Face Pressure From Competition and Falling Prices

Bank of America has identified similarities between the current artificial intelligence investment cycle and previous periods of large-scale capital spending, citing rising investment expectations, increased competition and declining prices for AI services. In a note to clients on Friday, investment strategist Sebastian Raedler examined whether AI infrastructure spending could follow the pattern of earlier capital investment cycles, in which expanding capacity eventually placed pressure on profi