AI Investment Fuels Global Growth as Market Volatility Looms, BofA Says

Bank of America’s 2026 market outlook forecasts stronger-than-expected global growth driven largely by artificial intelligence, even as the bank warns that financial volatility may rise as the economic impact of AI becomes clearer. According to BofA’s global research team, U.S. GDP is projected to expand 2.4% year-over-year by the end of 2026, supported by increased business investment, fiscal stimulus, and recent interest-rate cuts. China is also expected to outperform with growth estimates of 4.7% in 2026 and 4.5% in 2027.

The report highlights AI as the dominant force shaping the next phase of economic expansion. AI-related capital spending has already provided a lift to GDP, and BofA does not believe current conditions resemble a bubble. Candace Browning, head of BofA Global Research, emphasized that concerns of an imminent AI-driven market bubble are overstated and that the technology is fueling what could evolve into a major new investment cycle.

The AI boom has notably transformed the crypto mining sector. Bitcoin miners have benefited from surging demand for high-performance computing, with many firms generating revenue not only from mining but by leasing data center capacity to AI developers. Companies like IREN, Cipher Mining, and TeraWulf have seen their stock prices surge between 190% and 337% in 2025, even as bitcoin itself continues to trade near the $90,000 level without a strong breakout.

Markets appear to be shifting from consumer-led growth toward a cycle defined by infrastructure, capital expenditure, and productivity enhancements. This shift could unlock new opportunities across digital infrastructure, blockchain networks, and data monetization. Still, BofA warns of potential turbulence as investors reassess how AI affects inflation, labor markets, and sector performance. The current “K-shaped” recovery may deepen if AI accelerates productivity in tech while leaving slower sectors behind.

Emerging markets may see upside if the U.S. dollar weakens and monetary easing continues through 2026. With rising copper prices, strong corporate earnings expectations, and supportive fiscal policy, the global outlook remains cautiously optimistic. Whether AI becomes a stabilizing force or a source of economic disruption will be a defining question for markets in the year ahead, with crypto poised to play a subtle but growing role in this evolving landscape.