[Anna Potts speaking throughout]
[Music in background]
[Animated glitches containing various letters flip to spell out the following financial terms]
On screen copy:
Bear Market
Business Cycle
Risks
Bull Market
Fixed Income
Inflation
Equities
Diversification
Interest Rates
Opportunities
Geopolitics
Market Catalysts
Market Decode™
[Animated glitches end]
On screen copy:
Please see important information at the end of this program. Recorded on 2/12/2026.
Right now, it can feel like financial markets are focused on just one thing: artificial intelligence.
On screen copy:
Anna Potts
Investment strategist
Chief Investment Office
Merrill and Bank of America Private Bank
But here's what's getting less attention — and probably deserves more of it: power. Specifically, where all the power fueling the world — and the AI boom — is going to come from.
Global demand for electricity has never been higher. And yes, AI is a big part of that story. But as that demand accelerates, something else is happening: renewable energy is quietly stepping up to meet it.
On screen copy:
Two-thirds of 2025's total spend on energy investment went to renewables.
Source: International Energy Agency (IEA),
World Energy Investment 2025
In fact, last year more than $2.2 trillion was invested in clean energy worldwide. Meanwhile, investment in fossil fuels declined for the first time since 2020.
So what does that mean for investors? After a rough stretch, renewables may be turning a corner.
On screen graphic:
Three trend lines that chart the progression of the S&P Global Clean Energy Transition Index, MSCI All Country World Index, and MSCI World Energy Sector, over the course of 2025.
Source: Bloomberg. Data as of December 31, 2025. Past performance is no guarantee of future results. Please refer to index definitions at the end of this video. It is not possible to invest directly in an index.
Clean energy stocks surged last year, with the S&P Global Clean Energy Transition Index outperforming both the broader energy sector and global equity markets. And even after that move, we still see the space as underappreciated by the market.
Why? Because the story isn't just about power generation. When people talk about renewables, they often stop at wind turbines and solar panels.
On screen copy:
Key renewable energy themes:
Power generation (with image of solar panels and windmills)
Grid infrastructure (with image of power lines over solar panels)
Clean tech (with image of a hand holding a piece of a clean tech)
Energy management (with image of a meter reader)
But this is a much broader ecosystem — one that includes:
Grid infrastructure, like transmission and distribution equipment, and even battery storage.
Clean tech components such as semiconductors, power electronics and critical minerals.
And energy management and efficiency systems, which matter just as much as how power is produced.
On screen copy:
What's behind the boost in renewables?
- AI's twofold power demand
- Milder-than-expected incentives rollback
- Lower interest rates
So what's driving the progress we're seeing?
AI demand plays a role — but not just from chatbots or large language models.
The infrastructure required to support AI is extremely power-intensive.
On screen copy:
What's behind the boost in renewables?
- AI's twofold power demand
- Milder-than-expected incentives rollback
- Lower interest rates
Data centers, networking, cooling — all of it adds up.
Policy also turned out to be less of a headwind than many investors feared. Last year, markets braced for significant rollbacks in renewable energy incentives, but the One Big Beautiful Bill Act didn't unwind as much as many expected. And as interest rates eased in the second half of 2025, the financing backdrop improved as well.
On screen copy: Risks to watch out for:
- AI demand uncertainty
- Grid bottlenecks
- Policy timing
Of course, there are risks. If the AI buildout slows, that could soften some of the demand story. Grid bottlenecks remain a challenge, making connections and upgrades potentially challenging and slow. And with key policy decisions still ahead, renewable deployment in the U.S. may face more bumps in the road.
But big picture, we see rising global power demand as a durable, multi-year theme. And renewables are positioned as a competitive, structural part of that mix. So while AI may be grabbing the headlines, this is one area where the opportunity may be getting overlooked — and where we believe the long-term story remains compelling.
And that's the Market Decode.
On screen disclosures:
Important Disclosures
The opinions expressed are as of 2/12/2026 and are subject to change.
Investing involves risk, including the possible loss of principal.
Past performance is no guarantee of future results.
Asset allocation, diversification and rebalancing do not ensure a profit or protect against loss in declining markets.
Investments have varying degrees of risk. Some of the risks involved with equity securities include the possibility that the value of the stocks may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the U.S. or abroad.
Energy and natural resources stocks have been volatile. They may be affected by rising interest rates and inflation and can also be affected by factors such as natural events (for example, earthquakes or fires) and international politics.
Investing in commodities or the securities of companies operating in the commodities market involves a high degree of risk, including strategies and investment practices that may increase the risk of investment loss, including the principal value invested. Investments may be highly illiquid and subject to high fees and expenses. The value of the underlying commodity may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Certain commodities may be produced in a limited number of countries and may be controlled by a small number of producers. Other risks not listed may also affect the value of commodity investments.
Securities indexes assume reinvestment of all distributions and interest payments. Indexes are unmanaged and do not take into account fees or expenses. It is not possible to invest directly in an index. Indexes are all based in U.S. dollars. S&P Global Clean Energy Transition Index aims to track companies that produce energy from solar, wind, hydro, biomass, and other renewable sources. MSCI All-Country World Index captures large and mid cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. MSCI World Energy Sector Index is designed to capture the large and mid cap segments across Developed Markets (DM) countries.
This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.
This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.
The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., ("Bank of America") and Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S" or "Merrill"), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp.").
Merrill makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of BofA Corp. MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.
Merrill Private Wealth Management is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Both brokerage and investment advisory services are offered by the Private Wealth Advisors through MLPF&S. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill's obligations will differ among these services. Investments involve risk, including the possible loss of principal investment.
The banking, credit and trust services sold by the Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC and other affiliated banks.
The banking, credit and trust services sold by the Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC and other affiliated banks.
Bank of America Private Bank is a division of Bank of America, N.A., Member FDIC and a wholly owned subsidiary of BofA Corp. Trust and fiduciary services are provided by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A.
Investment products:
| Are Not FDIC Insured |
Are Not Bank Guaranteed |
May Lose Value |
© 2026 Bank of America Corporation. All rights reserved. 8767494 - 02/2026
[End of transcript]