Oppenheimer has a Positive Outlook on Bank of America (BAC)

Bank of America Corporation (NYSE:BAC) is one of the best dividend stocks to buy according to hedge funds. On November 19, Chris Kotowski, an Oppenheimer analyst, reiterated a Buy recommendation on BAC. The price target was set at $55.

In a November 5 report by Fortune, it was revealed that Bank of America’s yearly expenditure has risen by 44% over the course of the last ten years, reaching $4 billion in 2025. The increase in spending stemmed from new tech initiatives, notably the adoption of artificial intelligence within the bank.

Hari Gopalkrishnan, BAC’s chief technology and information officer, mentioned to Fortune:

“We have steadily increased our spend in technology, now up to $13 billion a year, of which $4 billion goes into strategic growth. We leverage across the enterprise, so every dollar you spend gets the maximum bang for the buck, as opposed to sort of being siloed by line of business.”

Gopalkrishnan mentioned that the latest AI products and applications will be scaled and implemented across each of the eight business segments at Bank of America.

Bank of America Corporation (NYSE:BAC) is one of the most popular dividend stocks among hedge funds, with the company boasting 20 years of dividend payouts.

While we acknowledge the potential of BAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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