Wells Fargo Sees Opportunity Amid AI-Driven Selloff

A report from Citrini Research has investors on high alert after discussing hypothetical scenarios of artificial intelligence impacting markets and the global economy. The research, released in a note, highlighted several under-researched situations that could potentially impact financial markets. One such scenario predicted a plunge in white-collar employment due to AI, leading to a stock market crash by 2028.

In response to this report, shares of credit card firms like American Express dropped significantly on Monday, with AXP falling 7.5%. However, Wells Fargo analysts saw an opportunity in the selloff and declared it 'a unique opportunity' to buy American Express stock at an attractive valuation.

The analysts disagree with the negative AI reports that highlight material unemployment risk and stablecoin, stating that the US consumer is stable, particularly in the affluent segment. They also believe that stimulus through the year will benefit this sector. Wells Fargo has an 'Overweight' rating on American Express with a $425 price target.