Goldman, JPMorgan Bank Record Revenue From AI Boom
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- Goldman Sachs posted record quarterly revenue of $20.3 billion, up 39% year-over-year, with CEO David Solomon calling the moment an "AI capex super cycle" of financing demand across every region and industry.
- JPMorgan Chase reported $58 billion in revenue, up 27%, with CFO Jeremy Barnum telling reporters AI is "everywhere in financial markets" — driving IPOs, index rebalancing, and a surge of activity in Asia.
- Equities trading delivered the quarter's biggest surprise: revenue jumped 86% to $6 billion at JPMorgan and 72% to $7.42 billion at Goldman, a combined $4.4 billion above analyst expectations.
- Goldman's investment banking revenue surged 55% to $3.4 billion, fueled by lead advisory roles on the SpaceX IPO and Alphabet's $90 billion equity issuance, while JPMorgan's climbed 30% to $3.3 billion — together beating forecasts by roughly $1 billion.
- Wells Fargo banking analyst Mike Mayo said the AI investment boom "reached a tipping point" in Q2, named Goldman, JPMorgan, and Morgan Stanley as the top Wall Street beneficiaries, and raised his price targets on the two reporting banks.
- Bank of America also joined the windfall — equity trading revenue up 70% to $3.6 billion, investment banking fees up 50% to $2.1 billion — and noted American clients are rotating into Asian AI plays in South Korea, Taiwan, and Japan.
- Goldman shares jumped 8% in afternoon trading and JPMorgan rose 2% as Solomon told analysts the firm is positioning for a three-to-five year AI investment cycle still in its "early stages."
Why it matters: Goldman's 39% revenue jump and JPMorgan's 27% surge — driven by a $4.4 billion equities-trading beat and roughly $1 billion in upside investment-banking fees — show the AI capex cycle is now generating tens of billions in Wall Street fees beyond Silicon Valley. With Solomon framing it as a multi-year super cycle still in its early stages, bank earnings are newly tethered to the same AI capex momentum that drives Nvidia and the hyperscalers.
