BofA Warns Iran War Threatens AI Capex, Consumer Spending Driving US Growth

Bank of America identifies AI capital expenditures and consumer spending as the two key engines powering recent US economic growth, but warns the Iran war risks derailing both via energy disruptions and inflation. This follows David Sacks' endorsement of a Morgan Stanley report projecting hyperscaler AI capex at $805B in 2026 (up to $1.1T in 2027), contributing ~2.5% to 2026 GDP growth and 3% in 2027, with Sacks claiming AI drove 75% of Q1 2026's 2% GDP expansion. BofA highlights Big Tech's $725B-$800B 2026 AI plans and consumer spending's ~1.08% Q1 contribution, but cautions oil shocks could bottleneck power supplies and erode spending power.