BofA says that the "easy money" on AI stocks may be over, because the market is beginning to treat AI as a double-edged sword: it will lift profits for some, take away margins from others, and accelerate business obsolescence. Therefore they expect up to -15% on EURO STOXX 600 futures by Q2 2026 and warn that valuations are built on an overly optimistic earnings outlook (the market seems to be pricing in very high EPS growth for years to come).

From their point of view the main risk is that companies will have to invest heavily in AI just to keep up, but the returns may not materialize quickly. That's why they give semiconductors "underweight" (RATING) and as a "shelter" prefer defensive areas like food and beverages, telecoms and chemicals. They still believe in software, especially where a company owns the data and is deeply embedded in customers' workflows.