If you've been investing lately, it probably feels like every stock on Wall Street has something to do with artificial intelligence. From semiconductors and software to power grids and data centers, investors can't get enough of AI-related plays.
But that frenzy is also creating crowded trades and sky-high valuations, raising the risk of sharp pullbacks if the hype loses steam.
According to Bank of America, some of the most compelling stock opportunities right now might be the ones quietly operating outside the AI spotlight.
AI Isn't The Only Story—Even If It Feels That Way
In a new report published Tuesday, Bank of America analyst Thomas Thornton highlighted 16 Buy-rated stocks that are not directly tied to the artificial intelligence boom, but still offer strong fundamentals, positive earnings revisions, and attractive entry points.
"AI excitement may be obscuring opportunities elsewhere," Thornton said, arguing that Wall Street's hyperfocus on semiconductors, hyperscalers and power infrastructure has left quality names overlooked and undervalued.
The selection zeroed in on companies with no direct connection to artificial intelligence and that aren’t heavily represented in ETFs focused on AI, infrastructure, or energy themes.
They also looked for names that had seen positive earnings estimate revisions over the past three months, were trading below the market's forward price-to-earnings ratio of 26 times, and had fallen at least 10% from their 52-week highs.
That process narrowed the list down to 82 potential candidates. From there, analysts singled out 16 stocks they felt most confident about—names showing strong fundamentals, recent momentum, or, ideally, both.
Here are 16 stocks Bank of America is backing right now — and none of them are chasing the AI hype.
- Amcor PLC (NYSE:AMCR)
- AT&T Inc. (NYSE:T)
- BGC Group Inc. (NASDAQ:BGC)
- Church & Dwight Co. Inc. (NYSE:CHD)
- Dollar General Corp. (NYSE:DG)
- Eversource Energy (NYSE:ES)
- Freeport-McMoRan Inc. (NYSE:FCX)
- Henry Schein Inc. (NASDAQ:HSIC)
- J.B. Hunt Transport Services Inc. (NASDAQ:JBHT)
- KeyCorp (NYSE:KEY)
- McCormick & Company Inc. (NYSE:MKC)
- Oneok Inc. (NYSE:OKE)
- Progressive Corp. (NYSE:PGR)
- Regency Centers Corp. (NASDAQ:REG)
- Viking Holdings Ltd. (NYSE:VIK)
- Walt Disney Co. (NYSE:DIS)
A Word Of Caution From BofA: Watch The AI Spend
Bank of America isn't anti-AI. But it is sounding the alarm on just how much money is pouring into the sector—and how high expectations have gotten.
Savita Subramanian, the bank's head of U.S. equity strategy, points out that companies leading the AI charge are now spending like oil giants—without yet proving they'll earn it back. She notes that the capex-to-cash-flow ratios of these firms rival those of U.S. energy majors.
Yet, they're trading at premium tech multiples.
"If AI monetization disappoints," Subramanian said, "hyperscalers are poised to de-rate." In short, if these companies can't turn all that investment into actual profit, the stocks could fall hard.
She also warns about what happens if AI-driven efficiency reduces white-collar jobs and consumer spending.
The bank’s list of 16 stocks offers a path to diversification, grounded in fundamentals and priced below the market hype.
For investors worried about the growing concentration risk in the S&P 500—or those just looking for value beyond the headlines—this is a roadmap worth keeping close.
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