Bank of America Survey Reveals: Credit Investors Fear AI Bubble as Top Risk

AI Bubble Tops Investor Concerns

A recent Bank of America client survey reveals that 23% of credit investors now rank the 'AI bubble' as their top concern — up sharply from 9% in the previous survey in December last year. Strategy analysts, including Barnaby Martin, noted a marked decrease in concerns over geopolitical events and central bank missteps.

Valuation Doubts Grow Over AI Sector

Market participants are increasingly questioning the sustainability of valuations in AI-linked firms, a concern now surpassing the long-standing fear of a credit bubble, which previously dominated investor sentiment.

Trade Tensions and Global Recession Seen as 2025 Threats

• Escalating trade tensions are seen as the biggest threat in 2025
• A global economic downturn follows closely behind

The survey also shows investor expectations for mega cloud service providers' bond issuance to reach $285 billion this year — a significant jump from the $210 billion predicted in December.