Goldman Sachs, JPMorgan post record revenue as AI financing cycle lifts Wall Street

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Goldman, JPMorgan record AI revenue

Highlights

Goldman Sachs posts a 39% rise in quarterly revenue to $20.3 billion, while JPMorgan reports a 27% increase to $58 billion, driven by AI-related investment activity.
Executives from both banks cite a global surge in trading, IPOs, debt issuance, and M&A tied to the AI capex super cycle, with heavy investor repositioning around the technology theme.
Goldman shares jump 8% and JPMorgan rises 2% after earnings, as analyst Mike Mayo raises price targets for both banks reflecting optimism about prolonged AI-driven growth.

AI-driven trading and dealmaking boost results

As reported by CNBC, Goldman Sachs and JPMorgan Chase say AI-related investment is driving a surge in trading, IPOs, debt issuance and mergers and acquisitions activity across global markets.

Goldman says quarterly revenue rises 39% to $20.3 billion, while JPMorgan reports a 27% increase to $58 billion. JPMorgan CFO Jeremy Barnum tells reporters that AI is "everywhere in financial markets," describing a highly active backdrop marked by large IPOs, index rebalancing and growing activity in Asia.

Bank executives say the momentum extends well beyond Silicon Valley. Banks are advising on AI-linked transactions, financing data centers and power infrastructure, underwriting debt and equity offerings, and handling heavier trading volumes as investors reposition around the technology theme.

Capital spending cycle expands opportunities

Goldman CEO David Solomon says the AI boom is creating a ripple effect across the U.S. economy and opening more opportunities for financing and trading services in public and private markets.

Solomon describes the current environment as an AI "capex super cycle," with financing demand spanning regions, industries and instruments worldwide. He says Goldman is preparing for a three-to-five year investment cycle that remains in its early stages.

Investor appetite for AI beneficiaries is also broadening geographically, with money flowing into Asian markets including South Korea, Taiwan and Japan, according to comments from Bank of America's Soofian Zubieri to CNBC. Goldman shares jump 8% in afternoon trading, while JPMorgan rises 2%, and Wells Fargo analyst Mike Mayo raises his price targets for both banks after the results.

In our earlier article on Wall Street banks’ AI infrastructure financing boom, we explained how the race to build data centers and related capacity was translating into rising demand for equity and debt issuance, loans, and advisory mandates. We also noted that banks were already collecting sizable fees from major AI-linked transactions and expected the investment cycle to keep expanding, even as executives cautioned that market conditions could turn less supportive.

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