BofA warns of risks seen in past capital cycles as concerns grow over AI boom

Bank of America has warned that the artificial intelligence investment boom could follow a familiar pattern seen in previous capital cycles, with intensifying competition, falling prices and excess capacity potentially leaving investors disappointed despite the technology's long-term promise. The warning comes as billions of dollars continue to flow into AI infrastructure, including data centers, advanced chips and computing capacity. The scale of investment has made AI one of the biggest bets in US industrial history, but questions are mounting over whether companies will generate sufficient returns to justify the spending. Railways, telecommunications and the internet all created enormous economic value, but investors also lost money when capital flooded into projects whose returns failed to justify their costs. AI-related stocks are…