It’s not the year 2000, and there is not an impending tech bubble, but that doesn’t mean investors shouldn’t be bracing for turbulence, Bank of America Research says. Savita Subramanian, BofA Securities’ head of U.S. equity and quantitative strategy, has been arguing that compared to the dotcom era, today’s AI boom has supported earnings growth, smaller IPOs, and “speculation in unprofitable stocks is less extreme.” However, she warned that aggressive capital expenditures from hyperscalers is increasingly relying on debt, presenting danger for investors still eagerly awaiting returns.

“Is this 2000? Are we in a bubble? No,” Subramanian said during BofA’s outlook call on Tuesday. “Will AI continue unfettered in leadership? Also no.”

Subramanian unpacked her thoughts in a recent note on th

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