AI Skepticism Could Be a ‘Contrarian’ Positive for Tech Stocks

Bank of America argues that skepticism about the new technology will prevent the buildup of even more hype regarding the most important source of growth in the stock market. Bank of America analysts, led by Vivek Arya, say that last week’s slump in the largely powered by a near 5% pullback in the Magnificent Seven stocks, may appear to suggest a cooling of enthusiasm about AI. Comments from OpenAI finance chief Sarah Friar on the need for a government backstop to AI funding, which she and CEO Sam Altman quickly walked back, added to the weakness.