Bank of America’s 2026 market outlook painted a picture of strong global growth led by investments in artificial intelligence, but warned that volatility could rise as investors begin to grasp the technology’s full economic impact.
The bank’s global research team expects U.S. GDP to grow 2.4% year-on-year by the end of 2026, higher than consensus, driven by business investment, fiscal stimulus and recent interest rate cuts. China’s economic growth is also expected to exceed expectations, with forecasts for 2026 and 2027 of 4.7% and 4.5% respectively.
But the most important force shaping the bank’s forecasts is artificial intelligence.
A surge in AI spending has boosted GDP, and Bank of America isn’t seeing a bubble just yet. “We are optimistic about the two most influential economies,” said Candace Browning, global head of research at Bank of America. “Concerns about the coming artificial intelligence bubble are exaggerated.” The report said that capital investment related to artificial intelligence is expected to expand further next year, and some economists believe this may become a new investment cycle.
Bitcoin Miners are already benefiting from the artificial intelligence boom in 2025, as surging demand for high-performance computing drives up the value of their infrastructure. Several publicly traded mining companies have reported revenue growth this year not only from mining but also from leasing data center capacity to artificial intelligence companies that require power-hungry GPUs.
IREN (IREN) is up 337.15% year to date, while Cipher Mining (CIFR) is trading up nearly 300%. TeraWulf (WULF) is up 190% over the same period. The gains came despite Bitcoin failing to convincingly break out this year, continuing to trade near the $90,000 area.
In effect, the market is shifting from a consumption-led recovery to one driven by capital spending, infrastructure and productivity. If this shift continues, it could ripple beyond traditional stocks into areas such as digital infrastructure, blockchain and data monetization – areas where cryptocurrency projects are already making claims.
Still, the bank expects turmoil ahead. Financial markets are likely to experience dramatic changes as investors and policymakers gain a clearer understanding of how artificial intelligence affects inflation, labor markets and supply chains. Bank of America warned that an ongoing “K-shaped” recovery, in which some sectors soar while others lag, adds to the complexity of the outlook.
This disconnect is likely to deepen if AI can boost productivity in tech and finance while leaving slower-moving industries behind. The result: a two-speed economy that is harder to manage with traditional tools. For markets, it increases the risk of mispricing and sudden revaluations.
Emerging markets could benefit in the short term, especially if the dollar weakens and oil prices remain low. Bank of America noted that these regions could see stronger performance by 2026, helped by global monetary easing. For some developing countries that are skipping traditional infrastructure in favor of digital systems, growing demand for AI may create new opportunities for alternative technologies.
Still, the tone of the report was cautiously optimistic. With the Federal Reserve expected to cut interest rates twice in 2026 and fiscal policy remaining hot, the economic backdrop remains supportive, at least for now.
Copper prices have risen this year on supply constraints and fiscal expansion, and while price gains have been modest, with S&P earnings expected to rise 14%, the market appears ready for a change. Whether AI becomes a productivity engine or a source of instability may be one of the defining questions of the next 12 months.
Cryptocurrency—especially its more infrastructure-focused forms—could play a role in this debate, even if it’s not yet at the center of the conversation.