AI bubble overtakes geopolitics as top concern for credit investors, BofA survey finds
South China Morning Post
by Cao LiFebruary 25, 2026
AI-Generated Deep Dive Summary
The risk of an artificial intelligence (AI) bubble has overtaken geopolitical concerns as the top worry among credit investors, according to a recent survey by Bank of America (BofA). In February, 23% of investment-grade clients surveyed said they viewed the AI bubble as their primary concern, up significantly from just 9% in December. This shift marks the first time that technological risks have eclipsed traditional geopolitical anxieties, reflecting growing unease about the rapid growth and potential overvaluation of AI-related industries.
The survey highlights a dramatic change in investor sentiment toward AI. While geopolitical tensions, such as the U.S.-China trade war and global economic uncertainty, were once dominant concerns, they now trail behind worries about AI's speculative risks. This shift underscores the increasing importance of technology-driven markets in shaping investor behavior. BofA strategists Barnaby Martin and Ioannis Angelakis, along with analyst Mohit Agarwalla, note that the rapid pace of innovation and investment in AI has raised fears of a potential bubble.
The rise of AI as a top concern reflects broader trends in the global economy. The exponential growth of AI startups, fueled by massive investments from institutional investors and tech giants alike, has created both opportunities and risks. While some see AI as a transformative force with limitless potential, others worry about overvaluation, market instability, and the ethical implications of unchecked technological advancement.
For readers interested in global economic trends, this shift signals a fundamental reordering of risks in the financial landscape. The growing emphasis on AI highlights how technology is reshaping traditional investment priorities. As AI continues to disrupt industries and create new markets, its potential impact on credit markets and broader economies will likely remain a key focus for investors.
This development also underscores the interconnectedness of global markets. While geopolitical tensions may still simmer in the background, the rise of AI as a dominant concern reflects how technological innovation is increasingly driving investor sentiment. As AI's influence expands, it could have far-reaching consequences for industries, governments, and economies worldwide.
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Originally published on South China Morning Post on 2/25/2026