Bank of America Corporation (BAC) Evaluates New Credit Cards With 10% Rate

Bank of America Corporation (NYSE:BAC) is among the most profitable financial stocks to invest in. On January 22, Reuters reported that Bank of America Corporation (NYSE:BAC) is weighing options to introduce new credit cards offering a 10% interest rate to meet President Donald Trump’s demands, according to a source familiar with the matter.

Separately, TD Cowen trimmed the price target on Bank of America Corporation (NYSE:BAC) to $64 from $66 and maintained a Buy rating on January 15. This downward price adjustment, suggesting an upside potential of 23%, comes after the bank’s fourth-quarter 2025 results, in which it surpassed market expectations by delivering a core EPS of $0.98. This was mainly fueled by a pullback in provisions and slight net interest income upside.

Bank of America (BAC) Needs Higher Rates, Says Jim Cramer

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Since the company’s earnings announcement on January 14, BAC has declined by approximately 2%. TD Cowen attributed this drop to the bank’s near-term operating leverage projection of 200 basis points for FY26, now at the bottom end of its medium-term range of 200 to 300 basis points. Despite this, TD Cowen remains optimistic about Bank of America Corporation (NYSE:BAC)’s overall performance.

Bank of America Corporation (NYSE:BAC) is a North Carolina-based provider of various financial products and services. Founded in 1784, the bank operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

While we acknowledge the potential of BAC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BAC and that has 100x upside potential, check out our report about this cheapest AI stock.

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