AI gains without the hype: banks urge 'transition' stocks for indirect AI exposure

Bank of America’s research advocates “transition investing” as a way to ride the AI boom without the bubble risk, favoring defense, infrastructure and metals tied to AI-driven energy transition for indirect AI exposure. They estimate AI-related capex reaching about $1.2 trillion by 2030 and $150 billion in AI infrastructure spend by 2028, suggesting a selective mix of high-quality, low AI-beta stocks across defense, infrastructure and transition metals to participate in AI growth while reducing exposure to direct AI stock volatility and hype.