Bank of America Flags AI Infrastructure Boom-Bust Cycle Risk as Spending Surge Faces Headwinds

Bank of America's equity strategists are sounding the alarm on the sustainability of the artificial intelligence spending boom, warning that excessive capital investment in AI infrastructure could trigger a systemic financial shock. The warning reflects a significant shift in institutional investor sentiment, with 38% of surveyed fund managers identifying hyperscaler capital spending as the most likely source of a major credit event—ranking it as the top systemic risk for a second consecutive month in September 2026.