AI Revolution 2.0: Bank of America’s ‘Agentic AI’ Prediction and Top 6 Stocks to Watch

Bank of America Predicts ‘Agentic AI Wave’ as Next Phase in AI Development

Bank of America (BofA) has forecasted a new phase in artificial intelligence development, dubbed the “Agentic AI wave.” This emerging trend is expected to bring significant advancements in AI-powered applications and robotics, potentially reshaping various industries.

According to BofA analysts, investor focus is shifting from major AI companies to emerging beneficiaries of this new wave. The bank has identified six large-cap stocks as top picks for investors looking to capitalize on this upcoming AI trend.

The Agentic AI wave represents the second phase of AI development, characterized by the deployment of AI in applications and robotics. Signs of this innovation are already visible in new AI software features and robotic implementations across various sectors.

BofA emphasizes the potential for AI’s near-term disruption, with AI monetization expected to begin in 2025 and experience significant growth by 2026. This shift in focus comes as investors look beyond top AI companies like Nvidia to identify new opportunities in the evolving AI landscape.

The bank’s top stock picks for the Agentic AI wave include:

1. Microsoft (MSFT): The tech giant plans to enhance its Copilot with AI agents for task automation. BofA sets a target price of $510 per share, representing a 23% potential upside.

1. Salesforce (CRM): The company is integrating AI agents into its products for customer service and marketing automation. A partnership with Nvidia for creating automated avatars further solidifies its position. The target price is set at $390 per share, offering a 14% potential upside.

1. Adobe (ADBE): By incorporating AI tools into Creative Cloud and Experience Cloud, Adobe aims to automate data analysis and content creation. BofA’s target price of $640 per share suggests a 20% potential upside.

1. ServiceNow (NOW): The company is deploying AI agents on its Now Platform for IT management and customer service. The target price is $1,075 per share, indicating a 1% potential upside.

1. Intuit (INTU): With a focus on integrating AI agents across products like TurboTax and QuickBooks, Intuit aims to automate billing and invoicing tasks. BofA sets a target price of $780 per share, representing a 21% potential upside.

1. HubSpot (HUBS): The company is introducing AI agents in its Marketing and Content Hub for sales and marketing automation. The target price is $780 per share, offering a 6% potential upside.

As the Agentic AI wave gains momentum, investors and industry observers will be closely watching these companies and others for signs of innovation and market disruption in the rapidly evolving AI landscape.