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Goldman Sachs and JPMorgan Chase are emerging as AI winners
CNBC • • business
Key Points:
- Goldman Sachs and JPMorgan Chase reported record quarterly revenues, driven by a surge in equities trading and investment banking linked to the global AI boom.
- JPMorgan CFO highlighted that AI-related activities, including big IPOs and index rebalancing, are fueling high market activity worldwide, especially in Asia.
- Banks are capitalizing on AI by advising on deals, financing infrastructure, underwriting offerings, and facilitating increased trading, creating a broad economic ripple effect.
- Equities trading revenue soared significantly, with JPMorgan and Goldman exceeding analyst expectations by $4.4 billion combined, while Bank of America also saw a 70% rise.
- Investment banking fees rose sharply as banks advised on major AI-driven transactions, and banks are beginning to implement AI internally to boost efficiency and control costs.
