Bank of America analysts: If the AI boom fades, defensive sectors may outperform
BlockBeats news, on June 25, JPMorgan strategist Sebastian Raedler warned investors that if AI spending proves unsustainable, defensive sectors such as consumer staples and pharmaceuticals should be considered.
He believes that with the emergence of cheaper models and customer resistance to higher prices, AI profitability may decline. Although optimistic forecasts from Micron and Qualcomm lifted market sentiment, Raedler stated that if AI trading weakens, bonds and defensive stocks may perform better.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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