Goldman Sachs and JPMorgan Chase posted record quarterly revenue driven by AI-fueled trading, IPOs, debt offerings, and increased M&A activity that boosted both equities trading and investment banking. Executives said artificial intelligence is lifting demand for financing across the globe—from data centers and power infrastructure to broader capital markets activity—creating what Goldman Sachs Chief Executive David Solomon called an AI capex super cycle. The strength in the quarter was aided by investors expanding their search for AI beneficiaries into Asian markets, with buying interest cited in South Korea, Taiwan, and Japan.
JPMorgan Chase and Goldman Sachs led the rebound in equities trading and advisory, underscoring that the AI wave is widening the circle of beneficiaries beyond traditional technology players. Goldman reported revenue of $20.3 billion, up 39%, while JPMorgan’s revenue rose 27% to $58 billion, with executives stressing that AI is “everywhere in financial markets,” in the words of JPMorgan Chief Financial Officer Jeremy Barnum. Analysts noted robust activity across initial public offerings, index rebalancings, and AI-enabled deal work worldwide, including Asia.
The AI cycle is reshaping the economics of finance by fueling advisory activity, underwriting, financing for data centers and infrastructure, and a surge in trading volumes. Solomon told analysts that the AI capex cycle is global and industry-spanning, with demand for financing in every instrument and in every region. Goldman signaled that the current period could unfold over a multi-year horizon, noting it remains early in a three-to-five year investment cycle. Investors and banks alike described a ripple effect that extends across the American economy and into trading desks, corporate finance, and client onboarding at scale.
In the quarter, equities trading revenue surged for both banks—JPMorgan’s equity trading revenue jumped 86% to $6 billion and Goldman’s rose 72% to $7.42 billion, contributing to a combined revenue surprise of about $1 billion versus expectations. Other large banks also benefited from AI-driven activity, including Bank of America, which saw equity trading revenue climb about 70% to $3.6 billion.
Goldman and JPMorgan were active on AI-related deals and financings, with Goldman leading the SpaceX IPO and Alphabet’s $90 billion equity issuance, and advising Dominion Energy’s sale to NextEra Energy. The broader market view, as analysts noted, suggests that the AI wave is expanding beyond technology and semiconductor sectors to banks and infrastructure players, creating new opportunities across public and private markets.
As executives reiterated, AI is shaping a capital-intensive environment that requires more financing and more flexible capital markets solutions. The results underscore how major banks are benefiting from AI-driven flows and the increasing need to finance large-scale AI deployments worldwide, including data centers and technology-enabled infrastructure. Analysts also highlighted questions about how long the investment surge will persist and the durability of AI-driven revenue streams and the scalability of advisory and financing activity in tandem with AI adoption.
Overall, the AI boom is broadening the footprint of beneficiaries beyond Silicon Valley and signaling a shift in how corporate finance and markets interact with AI-enabled growth across regions and industries.
