Bank of America Corp

A new Bank of America Institute study reveals that Gen Z is the leading generation in restaurant spending, with their spending growing at nearly double the pace of the next fastest-growing generation, millennials. Gen Z diners saw a 7% rise in restaurant spending year-over-year, while all age groups experienced positive spending growth. The bank attributes this to gains in after-tax wages benefiting younger workers, whereas older generations, who are less likely to benefit from labor market gains as they retire, saw a slowdown in spending over the summer. This trend emerges against a backdrop of U.S. inflation continuing to outpace wage growth since earlier this year, with households feeling the pinch from higher costs, including gas prices hovering around $4.

YLG Bullion and Futures says gold prices have passed their low point, expecting that any new correction will not fall below $4,200 per ounce, with a chance to reach $5,600 next year before moving on to $6,000. Meanwhile, MTS Gold sees a target of $4,700 this year, or about 74,000 baht, and next year it could touch 80,000 to 81,000 baht. This is in line with JPMorgan, which has raised its target to $5,500, and Bank of America, which expects $6,000 by 2027. Supporting factors include lack of confidence in the US economy, a public debt burden of $40 trillion, and concerns about debt default. Both firms oppose taxing gold trading, saying it would hurt liquidity, competition, and Thailand's goal of becoming a gold trading hub.

Bank of America says artificial intelligence is splitting leveraged-finance borrowers into clear winners and losers, with AI beneficiaries posting dramatically stronger revenue and EBITDA growth than companies facing AI disruption. Among high-yield issuers, the AI-tailwind group grew revenue 16.2% year over year in the second quarter and adjusted EBITDA 15.2%, while the AI-headwind group grew revenue just 4.1% and EBITDA 7.6%. For leveraged-loan borrowers, the gap was even wider: AI beneficiaries saw 26.8% revenue growth versus 3.6% for AI-risk companies, and EBITDA growth of 23.4% versus 3%. BofA calls the pattern a "Credit-K," noting that hardware companies in the leveraged-loan market recorded nearly 48% revenue growth and more than 50% EBITDA growth, while software and services revenue rose only about 4.5% to 5.8%. Companies have sold over $335.7 billion in AI-linked U.S. dollar debt year-to-date, with investment-grade debt accounting for about $255 billion, high-yield about $40 billion, and loans and direct lending about $20 billion each. Investment-grade AI debt trades at spreads of roughly 119 basis points, about 46 basis points wider than comparable non-AI debt, while high-yield AI spreads are around 320 basis points, a premium of about 147 basis points.

JPMorgan's consumer credit trends improved in the second quarter of 2026, with the Card Services net charge-off rate falling to 3.34% from 3.47% in the first quarter and 3.40% a year earlier. Management now expects the 2026 Card NCO rate to be roughly 3.2%, down from its prior outlook of nearly 3.4%, reflecting better-than-expected consumer credit performance. Debit and credit card sales volume rose 10% year over year, and higher revolving balances supported Card Services net interest income. Consumer & Community Banking recorded $2.2 billion of net charge-offs in the quarter, up $70 million from a year earlier, mainly due to Card Services. Peers Bank of America and Citigroup also reported improved card credit trends, with Bank of America's credit card NCO rate declining to 3.55% from 3.64% in the first quarter and 3.82% a year earlier, and Citigroup's U.S. Consumer Cards net credit losses roughly flat year over year at $1.85 billion.

Warren Buffett's Berkshire Hathaway is on pace to collect roughly $619 million a year in dividends from Bank of America after the bank's board approved a 14% dividend increase in July. The quarterly payout rises to $0.32 a share from $0.28, lifting the forward annual dividend to $1.28 a share. Berkshire currently holds 483,394,015 shares of Bank of America, according to CNBC, even after trimming its position by about 30.2 million shares, or 5.9%, in the second quarter. Bank of America reported second-quarter net income of $9.1 billion, up 27% from a year earlier, with earnings per share up 34% to $1.21. The bank's payout ratio is roughly 28% of earnings, and its 10-year dividend growth rate is about 15.6% annualized.

Artificial intelligence investment accelerated across pharmaceuticals, automotive, and financial services in the second quarter of 2026 as companies shifted from experimentation to strategic deployment, according to BCC Research. The global market for AI in pharmaceuticals was valued at $3 billion in 2024 and is projected to reach $15.2 billion by 2030 at a CAGR of 31.7%, while the automotive AI market is expected to grow from $5.2 billion in 2024 to $21 billion by 2030 at a CAGR of 27.5%. Google, Microsoft, and Amazon corporate venture arms collectively deployed more than $50 billion across AI rounds in 2025, and Meta invested over $14 billion in AI infrastructure and tool innovation in June 2025 alone. Financial institutions are also increasing AI budgets, with Bank of America earmarking nearly $4 billion in 2025 for AI and emerging tech and ICBC establishing an $11 billion technology innovation fund focused on AI infrastructure and semiconductors.

Bank of America predicts gold may yet hit $5,000 an ounce, with prices at about $4,358, roughly 15% below that target. The bank said softer US economic statistics, a weaker dollar and fewer prospects for further Federal Reserve tightening helped speed up the recent shift. Morgan Stanley is even more optimistic, with a $5,700-an-ounce long-term bull argument and metals strategist Amy Gower saying institutional flows are a key driver of the next big advance. Central-bank demand continues to be encouraging, as 89% of central banks predict global gold reserves to keep rising over the next year, according to World Gold Council data cited by TipRanks. The next test for investors is whether dropping rates and revived ETF demand will sustain gold's upward momentum.

Bank of America is investing approximately $1.9 billion for up to a 49.9% stake in Jio Credit Limited, the lending subsidiary of Jio Financial Services. The deal gives Bank of America exposure to India's rapidly growing credit market and equal representation on Jio Credit's board. Jio Credit's assets under management reached $3.2 billion as of June 30, 2026, up 2.6 times year over year. The transaction is not expected to materially affect Bank of America's near-term financial results.

Bank of America strategist Michael Hartnett said in a Monday note that gold remains his preferred hedge against a weakening dollar, citing the biggest inflows into the metal since January. Gold funds attracted $6.3 billion in the latest week, the largest since January 2026, alongside $25.4 billion into cash, $23.8 billion into bonds and $16.1 billion into equities. Hartnett wrote that the trade is long gold, still the best hedge against dollar debasement, bond collapse, asset inflation, and the populist politics of the 2020s. BofA added that the same theme is positive for emerging market assets, flagging Brazil's Oct. 4 election as directionally key. Investment-grade bonds drew a $10.6 billion inflow, the biggest in five weeks, while European equities took in $1.2 billion, the largest since February; China equities saw a $14.5 billion outflow, the biggest since May, and technology funds shed $1.2 billion.

Bank of America strategists led by Michael Hartnett say a Republican Senate win and Greg Abbott's re-election in Texas would fuel a further stock rally, especially in AI. A strong showing for President Donald Trump's party on Nov. 3 and an Abbott victory would be particularly positive for the artificial intelligence trade, while a Democratic Senate takeover and Abbott loss would trigger a stock slump of over 10% and drops in the dollar and bond yields into year-end. Hartnett views the Texas race as a referendum on affordability versus AI data centers, noting the state already has 335 centers with proposals for 247 more. The strategists see the door wide open for bulls to push risk higher, citing soaring earnings, a $10 trillion wealth surge in 2026, and over $1 trillion of AI capex expected in 2027.

Advanced Micro Devices launched a four-part debt offering that could raise between $4 billion and $5 billion, according to terms reviewed by Reuters. The senior unsecured notes are due in 2029, 2031, 2033 and 2036, with initial price discussions set at about 70 basis points over U.S. Treasuries for the 3-year notes, 90 basis points for the 5-year tranche, 100 basis points for the 7-year notes and 115 basis points for the 10-year debt. AMD said it intends to use the proceeds for general corporate purposes, which may include repaying debt. Bank of America, JPMorgan, Barclays and Wells Fargo are leading the debt sale, with the bonds expected to settle on August 17.

Bank of America said on August 12 that it will deploy $250 billion by July 2027 to finance US digital and infrastructure projects, from data centers to power grids to natural gas pipelines. The bank calls it the Critical Infrastructure Finance Initiative, and it comes as the bank reported second-quarter revenue up 15.3% year-over-year to $31.6 billion and net income up 26.8% to $9.1 billion. The pledge is a deployment target measured over an 18-month window from January 1, 2026 to July 4, 2027, and many projects need to be built before generating revenue. Bank of America faces competition from Morgan Stanley's roughly $1.5 trillion technology and infrastructure financing pledge and JPMorgan Chase's $1.5 trillion plan for national security and economic resilience industries. Hedge fund ownership of Bank of America slipped from 118 funds to 106 in the most recent quarter, and shares trade at a forward price-to-earnings ratio of 13.81 as of August 12.

Bank of America launched a $250 billion U.S. infrastructure-financing initiative on Wednesday, sending its stock up roughly 0.7% by late morning. The target runs from January 1, 2026, through July 4, 2027, and spans lending, investing, capital markets, advisory, and supply-chain financing across all eight of the bank's business lines. Eligible projects include data centers, computing hardware, telecom networks, semiconductor facilities, power generation, energy storage, transmission, transportation, water systems, and critical minerals, positioning the bank to benefit from the AI infrastructure boom. At $64.475, the stock trades about 20.02% above its GF Value estimate of $53.72, meaning investors are already paying a premium. The initiative averages roughly $13.9 billion per month over 18 months, though actual deployment is expected to be uneven.

Bank of America plans to acquire UK-based information-security specialist MDSec Consulting Limited, a deal expected to close in the fourth quarter of 2026 pending regulatory approvals. The acquisition will bring roughly 65 highly skilled cybersecurity professionals into the bank's technology and security organization. Financial terms were not disclosed, but the transaction is expected to add modest personnel and integration costs. The move is part of Bank of America's broader technology investment program, which included $13 billion of technology spending in 2025. The bank aims to strengthen vulnerability assessment, threat detection, and security engineering capabilities as cyber threats become more sophisticated with the rise of AI.

Bank of America has announced plans to deploy 250 billion dollars over the 18 months through July 2027 into US digital infrastructure projects. The Critical Infrastructure Finance Initiative will target three areas including data centers, renewable energy, and transportation, providing lending, investment, and advisory services in the primary market. The bank says the effort will boost economic growth and help create tens of thousands of jobs.

The Clearing House announced a consortium of 25 major financial institutions, including JPMorgan, Bank of America, Citigroup, and Wells Fargo, will launch a shared tokenized deposit network in the first half of 2027. The network aims to protect up to $6.6 trillion in deposits from the $263 billion stablecoin market by enabling round-the-clock movement of tokenized deposits between member banks. It will integrate with existing CHIPS and RTP rails, with CHIPS having settled an average of $2 trillion per day in 2025. The initiative comes as the GENIUS Act, effective January 18, 2027, prohibits stablecoin interest, pushing banks to offer a compliant, interest-bearing alternative. CEO David Watson described tokenized deposits as an evolution of commercial bank money, though past consortium failures like we.trade and Marco Polo highlight the challenge of aligning competing institutions.

Celestica has announced a $3 billion treasury offering of common shares to fund investments supporting multi-year demand from its AI infrastructure customers. The company intends to grant underwriters a 30-day option to purchase up to an additional 15% of the shares offered. BofA Securities and Citigroup are acting as joint lead bookrunners, with TD Securities as bookrunner. Net proceeds will be used for working capital, capital expenditures, and general corporate purposes. The offering is subject to customary closing conditions, including listing on the New York Stock Exchange and Toronto Stock Exchange.

Apple's manufacturing purchase commitments surged 28% quarter over quarter to $57 billion in the fiscal third quarter, a move Bank of America analyst Wamsi Mohan interprets as a sign of an iPhone production ramp and component stockpiling. The increase from $44.6 billion far exceeded the flat reading in the March quarter and the 15% and 12% gains seen in the same period of the prior two years. Mohan said the outsized jump is potentially due to Apple buying components, including memory, to ensure supply and protect against higher prices, and he expects commitments to rise further into the fourth quarter ahead of the new iPhone launch. Bank of America reiterated a Buy rating and $380 price target on Apple, also highlighting strong capital returns of more than $29.8 billion to shareholders in the quarter, including $25.8 billion in buybacks and $4 billion in dividends.

Bank of America and J.P. Morgan are among the first financial institutions globally to go live on a new Swift initiative that sets a standard for international retail transfers, providing consumers with full-amount delivery, faster arrival times, and upfront cost transparency. The initiative, backed by over 60 banks from 25 countries, initially supports payments from Australia, Brazil, China, India, South Africa, South Korea, Spain, and Turkey to the US. The US receives approximately $9 billion annually in remittances from abroad, according to the World Bank. Swift's framework aims to deliver greater transparency, speed, and predictability for cross-border payments, with more US banks expected to join over time.

The seven diversified banks stocks tracked by this publication reported a strong second quarter, with revenues beating analysts' consensus estimates by 4.6%. Wells Fargo posted revenues of $22.7 billion, up 8.6% year on year and exceeding expectations by 3.9%, while Citigroup delivered the best performance with revenues of $24.79 billion, a 14.3% increase that beat estimates by 4.5%. U.S. Bancorp was the weakest, with revenues of $7.76 billion up 9.9% but a miss on tangible book value per share. Bank of America reported revenues of $31.78 billion, up 15% and beating estimates by 3.3%, and Truist Financial had the slowest revenue growth at 5.1% to $5.31 billion. Despite the strong results, the group's share prices have collectively declined 1.2% on average since the latest earnings.

Bank of America has agreed to acquire UK-based cybersecurity firm MDSec Consulting, marking its first acquisition in five years. The deal aims to strengthen the bank's digital defense capabilities against rising AI-driven cyber threats and support its growth plans in the UK and globally. The move aligns with an industry shift toward bringing more security expertise in-house, and the integration could influence future technology spending priorities and regulatory discussions. For investors, the acquisition highlights management's focus on operational risk and digital resilience, though the complexity of integrating a specialist firm across a global bank presents execution risks.

Apnimed Inc., a late-stage drug developer focused on sleep apnea, rose 6.3% on Friday after raising $192 million in an upsized US initial public offering. The company sold 12 million shares at $16 each, above the marketed range of 10 million shares for $14 to $16, and the stock traded at $17 per share as of 11:57 a.m. in New York. The listing gives the Cambridge, Massachusetts-based firm a market value of about $680 million. Apnimed is developing an oral tablet, Oxnimbi, to treat obstructive sleep apnea and submitted a marketing application to the US Food and Drug Administration in April, with a regulatory review expected to take 10 months. The offering was led by Bank of America Corp., Evercore Inc., Cantor Fitzgerald and LifeSci Capital, and shares trade on the Nasdaq Global Market under the symbol APMD.