Wall Street giants BlackRock and Bank of America dismiss AI boom as a speculative bubble, citing real corporate investment and productivity gains. BlackRock estimates $5-8 trillion in global corporate spending by 2030, mostly in the US, potentially boosting GDP growth above 2%. Investors urged to consider huge spending plans against AI revenues.

BlackRock and Bank of America caution against labeling AI boom as a bubble, highlighting the transformative but vulnerable nature of AI build-out. BlackRock notes AI data centers could consume 15-20% of US electricity by 2030. Bank of America sees hyperscaler spending reaching $400 billion in 2025 and $510 billion in 2026.

Bank of America’s Savita Subramanian refutes bubble comparison to 2000, predicting a potential “air pocket” where capital spending exceeds revenue growth. Despite similarities to 2000, differences this time include lower stock allocations, supported valuations, smaller IPOs, and less speculation in unprofitable companies.

Bank of America maintains bullish long-term view, forecasting S&P 500 to reach 7,100 by 2026. While comparisons to 2000 are noted, the firm emphasizes key differences in the current market landscape. S&P target aligns with cautious optimism amidst AI-driven market dynamics.

Read more at Yahoo Finance: Wall Street says it’s time to reset the AI narrative