The era of "effortless wins" in AI capex trades may be coming to an end; BofA advises investors to shift toward consumer sectors.

According to Zhitong Finance APP, Bank of America strategists believe that as the market has already fully priced in the investment thesis of sustained growth in AI-related capital expenditure and pressure on discretionary consumer spending, it may become increasingly difficult for investors to generate excess returns by "going long on AI capex beneficiaries and avoiding white-collar consumption-related stocks." The bank recommends that investors begin making selective adjustments, because the strong outlook for AI capital expenditure may already be largely reflected in asset prices, while the resilience of the U.S. consumer should not be underestimated.