Bank of America Bullish on S&P 500 Earnings Potential Thanks to AI Investment Boom
• Bank of America raises 2024 EPS target for S&P 500 to $250, a Street high, citing AI investment and productivity gains • BofA analysts were early in correctly calling a positive market outlook last year • AI going from company/sector story to macro story as "virtuous cycle" of tech investment offsets cuts elsewhere • Hyperscalers (Big Tech) expected to spend $180B on capex this year, up 27%, driving future returns • Sees potential manufacturing upgrade and inventory restocking cycle after overcorrection