A top Bank of America investment chief signals the AI-driven market rally may soon reverse, drawing parallels to past bubbles.
Bank of America’s chief investment strategist Michael Hartnett has cautioned clients that the AI stock bubble is poised to burst. His latest research note, shared privately with investors, outlines a “post-bubble roadmap” amid growing concerns over unsustainable market valuations in tech shares.
Hartnett, who coined the term “The Magnificent Seven” for the largest tech stocks, compares current trends to the dot-com bubble. The warning follows a prolonged rally in AI-related equities, with the S&P 500 hitting record highs driven by a handful of mega-cap names.
While Hartnett has not publicly detailed specific triggers, his guidance suggests investors prepare for a sharp correction. The note underscores rising skepticism among market watchers about the durability of the AI-driven surge.