As concerns about the AI market begin to surface, investors seeking growth opportunities can turn to a specially curated list from Bank of America.
This past summer, stocks linked to artificial intelligence experienced significant volatility, influencing both major players in the tech field and companies benefiting from AI expenditures. Given this unpredictable environment, Bank of America’s clients are seeking ways to maintain involvement in growth-oriented investments while mitigating risks associated with AI-related fluctuations.
“Recent inquiries indicate a sense of AI fatigue among investors,” remarked Savita Subramanian, the bank's head of U.S. equity and quantitative strategy, in a client memo dated August 21. She noted that "growth investors are increasingly looking for alternatives outside the realm of direct AI investments."
To assist these investors, Bank of America has identified a selection of 16 stocks that promise a compelling balance between significant upside potential and lower correlation with the price volatility typical of major AI players like Nvidia, Alphabet, Microsoft, and Meta.
These selected stocks span the consumer staples, healthcare, and financial sectors within the S&P 500, areas that have not yet been heavily influenced by AI trends. Each one boasts projected earnings-per-share growth in the top tier of the S&P 500 over the next five years, and all have received a "Buy" recommendation from the bank.
The following is a list of these companies ranked by their expected earnings growth.
