In the past 10 years,$S&P 500 Index (.SPX.US)$of the market value growth, 48% came from the 'Magnificent Seven,' excluding the ones that entered the index in 2020.$Tesla (TSLA.US)$.

Bank of America's global research strategist has been calling for a review of investments in large-scale artificial intelligence, and a shift towards more stable investment portfolios.

This call is quite challenging. If an investor trades in the Roundhill Magnificent Seven exchange-traded fund (which tracks Alphabet,$Amazon (AMZN.US)$,$NVIDIA (NVDA.US)$,$Netflix (NFLX.US)$Tesla, Apple, and $Microsoft (MSFT.US)$) Investing $0.1 million in Tesla, Apple, and Meta Platforms will yield approximately $0.055 million in profit over the past year. In contrast, the same investor's return in the S&P 500 index fund is only slightly more than half.

Thanks to the AI boom, tech giants have achieved good returns. Bank of America points out that the enthusiasm for AI has reached its peak, and the real economy is entering a decade of catching up.

Bank of America's Jared Woodson recently stated, 'The speculation around AI has reached its peak, and various sectors of the real economy will enter a decade of catching up.'

In the past 10 years, 48% of the market value increase of the s&p 500 index came from the 'Seven Giants' stocks. After Tesla entered the index in 2020, it is estimated that these seven stocks will occupy 52.5% of the increase by 2024, according to calculations by the Dow Jones Market Data team.

However, there is now a growing concern about whether the benefits of artificial intelligence can offset the costs supporting this technology, such as data centers and related hardware. Alphabet almost doubled its expenditure in the last quarter, and$Meta Platforms (META.US)$also raised its annual expectations.

In its report on July 16, Bank of America pointed out, $Global X Artificial Intelligence & Technology ETF (AIQ.US)$ The expected earnings growth is declining and was reiterated last Friday. This expectation is close to the forecast of 13% for the S&P 500 this year, which may benefit the other 493 stocks in the S&P 500, according to Savita Subramanian of Bank of America.

Bank of America screened a group of stocks that have outperformed the S&P 500 from the beginning of the year to the present, as well as over the past three, five, and ten years, and selected the stocks rated as buy, balancing the growth and value of the investment portfolio, as defined by FactSet.

In the consumer discretionary sector, car parts stocks were identified in the screening results.$O'Reilly Automotive (ORLY.US)$and residential construction stocks$NVR Inc (NVR.US)$rose 18% and 26.5% respectively this year. In the financial sector, screening results selected$Progressive (PGR.US)$,$KKR & Co (KKR.US)$And.$Arch Capital (ACGL.US)$.

Bank of America is positive about these two areas. Bank of America has an underweight position in the overall technology industry, consumer goods, and medical care sectors in its investment portfolio. However, in the screening process, it highlighted the consumer goods sector.$Costco (COST.US)$, and selected in the medical care$Vertex Pharmaceuticals (VRTX.US)$And.$HCA Healthcare (HCA.US)$.$Analog Devices (ADI.US)$And.$Amphenol (APH.US)$It is a representative in the field of technology.

Only$Vulcan Materials (VMC.US)$In the industrial sector, Bank of America specifically focuses on$Eaton (ETN.US)$,$Cintas (CTAS.US)$And.$Parker Hannifin (PH.US)$When the Fed cuts interest rates, materials and industrial sector companies that usually rely on borrowing for growth may benefit.

The stock market has performed well this year. Despite recession expectations, small bank crises, and recent drops, the S&P 500 index is still expected to close with a double-digit increase. Historically, investing in broad-based indices has often been superior to selecting individual stocks. Investors should focus on the fundamental aspects of companies and their own risk tolerance before choosing stocks.