Bank of America Identifies 16 Non-AI Stock Picks Amid Market Concentration Concerns

This analysis is based on the MarketWatch report [1] published on November 12, 2025, which covered Bank of America’s strategic recommendations for investors seeking alternatives to AI-dominated investments. BofA analysts, led by Thomas Thornton, identified 16 Buy-rated stocks operating outside the artificial intelligence sector, arguing that excessive AI focus is obscuring value opportunities and creating dangerous market concentration risks [1][2]. The report specifically targeted companies trading below the market’s forward P/E ratio of 26x and fallen at least 10% from their 52-week highs [1].

The BofA report emerged during a period of mixed market performance on November 12, 2025, with major indices showing divergent patterns. The S&P 500 closed at 6,850.92 (-0.25%), NASDAQ at 23,406.46 (-0.67%), while the Dow Jones gained 0.50% to 48,254.82 [0]. Technology stocks underperformed significantly, with the sector down -0.81% on the day [0], supporting BofA’s thesis about potential AI sector fatigue.

BofA’s comprehensive list includes: Amcor PLC (AMCR), AT&T Inc. (T), BGC Group Inc. (BGC), Church & Dwight Co. (CHD), Dollar General Corp. (DG), Eversource Energy (ES), Freeport-McMoRan Inc. (FCX), Henry Schein Inc. (HSIC), J.B. Hunt Transport Services Inc. (JBHT), KeyCorp (KEY), McCormick & Company Inc. (MKC), Oneok Inc. (OKE), Progressive Corp. (PGR), Regency Centers Corp. (REG), Viking Holdings Ltd. (VIK), and Walt Disney Co. (DIS) [1].

The selected stocks demonstrate attractive valuation metrics compared to the broader market:

• Dollar General
  : P/E 19.30x (significant discount to market 26x) [0]
• McCormick
  : P/E 22.88x (below market average) [0]
• Viking Holdings
  : P/E 32.27x (premium valuation but justified by positioning) [0]

This contrasts sharply with AI stocks like NVIDIA trading at P/E ratios of 55x [0], highlighting the value proposition in non-AI selections.

The sectors represented in BofA’s picks showed varied performance:

• Consumer Defensive
  : -0.14% (includes Dollar General, McCormick) [0]
• Communication Services
  : +1.38% (includes AT&T, Disney) [0]
• Healthcare
  : +0.34% (includes Henry Schein) [0]
• Financial Services
  : -0.06% (includes KeyCorp, Progressive) [0]

The report identifies three key economic themes driving these selections:

1. Premium Consumer Spending
   : Viking’s success with affluent travelers in the K-shaped recovery [2]
2. Trade-Down Consumer Behavior
   : Dollar General benefiting from middle-income value-seeking [2]
3. Tariff Sensitivity
   : McCormick’s potential for relief if trade policies change [2]

BofA’s head of U.S. equity strategy, Savita Subramanian, issued a critical warning about AI sector concentration. She noted that AI-leading companies are spending like oil majors without proven returns, with capex-to-cash-flow ratios rivaling U.S. energy majors while trading at premium tech multiples [1]. This creates dangerous concentration risk in the S&P 500, where the top 20 stocks now represent over 30% of the index.

The 16-stock selection provides meaningful sector diversification away from technology concentration, offering exposure to:

• Consumer trends
  (both premium and value segments)
• Industrial cycles
  (transportation, materials)
• Financial services
  (regional banking, insurance)
• Healthcare
  (medical distribution)

Three highlighted stocks demonstrated positive momentum on the report date:

• Viking Holdings (VIK)
  : $60.99 (+1.57%), trading 6.7% below 52-week high of $65.37 [0]
• Dollar General (DG)
  : $104.21 (+0.13%), trading 11.7% below 52-week high of $117.95 [0]
• McCormick (MKC)
  : $65.88 (+0.27%), trading 23.6% below 52-week high of $86.24 [0]

1. AI Sector Correction Risk
   : If AI stocks experience a significant pullback, it could trigger broader market volatility affecting all equities
2. Economic Sensitivity
   : Many selected stocks (retail, transportation, financials) are cyclical and vulnerable to economic slowdowns
3. Consumer Spending Pressure
   : Persistent inflation could impact both premium and value-oriented consumer stocks
4. Missing Catalyst Information
   : The report lacks specific guidance on optimal entry points or expected catalysts

1. Value Gap
   : Significant valuation discounts between AI stocks (55x P/E) and non-AI selections (19-32x P/E) [0]
2. Sector Rotation
   : Potential for capital flow from overvalued AI stocks to undervalued traditional sectors
3. Economic Recovery
   : Beneficiaries from different segments of K-shaped recovery
4. Trade Policy Changes
   : Potential relief for internationally exposed companies like McCormick

Decision-makers should track:

• AI Investment Returns
  : Whether major AI companies can justify elevated capital spending
• Consumer Behavior
  : Shifts in spending patterns between premium and value segments
• Trade Policy Developments
  : Particularly important for internationally exposed companies
• Interest Rate Environment
  : Critical for financial services and real estate holdings

The Bank of America report presents a compelling case for portfolio diversification beyond AI-dominated investments. The 16 selected stocks offer attractive valuations, sector diversity, and exposure to different economic themes ranging from premium consumer spending to trade-down behavior. While the analysis highlights significant concentration risks in AI-heavy portfolios, investors should remain aware of the cyclical nature of many non-tech selections and monitor economic indicators closely. The report provides valuable context for portfolio allocation decisions but lacks detailed financial projections and specific timing guidance [1][2].

[0] Ginlix InfoFlow Analytical Database - Market data and stock quotes retrieved November 12, 2025
[1] MarketWatch - “Sick of hearing about the AI trade? BofA offers 16 hot stock picks that go far beyond tech” published November 12, 2025, https://www.marketwatch.com/story/sick-of-hearing-about-the-ai-trade-bofa-offers-16-hot-stock-picks-that-go-far-beyond-tech-cbf0975a
[2] The Wealth Advisor - “BofA Says AI Excitement Is Eclipsing Other Investing Opportunities” by Hamza Shaban, November 12, 2025, https://www.thewealthadvisor.com/article/bofa-says-ai-excitement-eclipsing-other-investing-opportunities