AI Spending by U.S. Companies Has Fund Managers Looking Overseas for Stocks

Global fund managers are signaling a significant shift in investment strategy, with mounting concerns over artificial intelligence spending driving a strategic rotation away from U.S. tech stocks and toward international markets. According to the latest Bank of America Fund Managers' Survey, investors are becoming increasingly wary of what some are describing as an emerging AI-driven market transformation.

The survey reveals a striking statistic: 35% of fund managers now cite an 'AI bubble' as their top market risk. This skepticism stems from the massive capital expenditure plans of tech giants like Microsoft, Alphabet, Amazon, and Meta, who are projected to invest a staggering $650 billion in data center infrastructure in 2026 - a 60% increase from 2025 levels.

Investors are not merely passive observers but are actively repositioning their portfolios. A net 24% of survey respondents anticipate corporate earnings growth exceeding 10% this year, the highest projection since August 2021. Moreover, 38% expect potential Treasury yield impacts from these technological investments.

The market rotation extends beyond technology sectors. Fund managers are increasingly looking overseas, taking underweight positions in the U.S. dollar, Treasuries, and the S&P 500. This strategic pivot suggests a broader reassessment of investment risks and opportunities in the rapidly evolving global economic landscape.

For precious metals investors, these dynamics present nuanced implications. The potential cooling of U.S. tech investments could redirect capital flows, potentially benefiting sectors like energy, materials, and alternative technologies where silver plays a critical industrial role. The uncertainty surrounding AI spending might also drive investors toward safe-haven assets, potentially supporting silver and gold prices.

As the investment community navigates this complex terrain, one thing remains clear: the artificial intelligence revolution is reshaping not just technology, but the entire global investment ecosystem. Savvy investors will need to remain agile, continuously reassessing their strategies in response to these unprecedented market transformations.