Bank of America warns: While the popularity of artificial intelligence remains high, valuations may be reassessed, and strong earnings do not necessarily lead to strong gains.

Finance and Economics App learned that Savita Subramanian, stock and quantitative strategy chief at Bank of America Securities, warned that despite expectations of strong profit growth for large tech companies, their valuations may still experience a readjustment. In an interview, Subramanian expressed concerns that investors are "mistaking fantasy for reality" by investing in tech stocks, paying extremely high or near-extreme price-earning ratios for companies that are building the necessary power infrastructure and data centers for artificial intelligence without clear evidence of immediate profit.