Bank of America Lists 16 Stocks to Counter AI Fatigue

Bank of America identified 16 high-growth stocks to assist investors in diversifying their portfolios away from the volatile artificial intelligence trade. In a client note issued August 21, the bank recommended companies with five-year projected earnings-per-share growth in the top quintile of the S&P 500, all of which currently hold a Buy rating from the institution.

Savita Subramanian, the bank's head of US equity and quantitative strategy, stated that incoming requests from clients suggest "AI fatigue." She noted that growth investors are seeking exposure with low correlation to AI-driven firms such as Nvidia and Microsoft.

The recommended stocks are concentrated in the healthcare, financials, and consumer staples sectors. Top picks based on projected earnings growth include Eli Lilly, Centene, Block, Robinhood Markets, and Estee Lauder Companies.