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 the AI revolution are emerging,” with the market narrative rapidly shifting from an “upside-only” perspective to serious concerns that AI is a “double-edged sword.” Chief among these new fears is the growing realization that AI might not universally boost corporate profits—it might actively destroy them.
