According to Jin10, Bank of America analysts wrote that European stocks will underperform because the path to AI monetization is uncertain, and they expect the STOXX Europe 600 Index to fall 10% to 580 by the second quarter of 2027. The analysts said intensifying competition from China and the United States will force AI model makers to offer more competitive pricing, which could weigh on already very high profit expectations, while rising borrowing costs will also hurt corporate earnings. They added that European stock valuations already reflect expectations of continued AI spending growth, but a reversal in AI momentum would weaken that optimism.