Bank of America (BAC) CEO Brian Moynihan says that artificial intelligence (AI) is helping to drive the U.S. economy forward.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge-fund level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
“The AI investment’s been building during the year and is probably a bigger contributor next year and the years beyond,” Moynihan said in a year-end media interview. “AI is kicking in more and more,” he added. Bank of America forecasts a robust U.S. economy in 2026, projecting 2.4% growth, up from 2% this year.
Moynihan notes that while the U.S. labor market has softened, this appears to be more of a normalization in employment than signs of a sharp downturn in the economy. “The markets are valuing that future growth rate and that’s why they’ve been very constructive this year,” he said in the interview.
Limited Downside to the AI Trade
The CEO added that Bank of America sees minimal downside risk to the U.S. economy if the AI sector becomes overheated and needs to pull back, as the industry consists of a narrow group of companies. This limited exposure should minimize impacts on consumers and job losses, said Moynihan.
“As a lender we look at the leverage on these projects and make sure we’re comfortable with that and the duration of the contract by the person who’s going to commit to use the data center,” he said. Moynihan also mentioned that Bank of America is implementing its own AI, saying staff are using the technology to be more effective in their jobs.
Is BAC Stock a Buy?
Bank of America’s stock has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 17 Buy and two Hold recommendations issued in the last three months. The average BAC price target of $59.61 implies 6.48% upside from current levels.
