BofA analysts say uncertainty over AI monetization and intensified competition
vendors from China and the US could force AI model to cut prices, undermining
lofty profit expectations. Rising borrowing costs will further pressure
corporate earnings. European equities already price in sustained AI spending; a
reversal in AI momentum would weaken that optimism. BofA forecasts the Stoxx
Europe 600 will fall about 10% to 580 by Q2 2027.
