BofA Sees AI Stocks Returning as Data Center Risks Grow

BofA Global Research expects artificial intelligence shares to regain investor interest, while warning that a Democratic sweep in the 2026 U.S. midterms could slow data center construction and unsettle risk assets.

BofA analysts say a shift in political control could bring higher taxes and tighter rules, conditions that could weigh on corporate earnings and rattle risk assets. The bank also identifies voter opposition and state-level campaigns as potential drivers of new data center restrictions.

Those restrictions could slow construction and make BofA’s $2 trillion AI capital spending forecast for 2028 look too high.