Wall Street’s largest financial institutions are capturing significant value from the expanding artificial intelligence sector, with Goldman Sachs and JPMorgan Chase emerging as primary beneficiaries of the trend. According to Wells Fargo banking analyst Mike Mayo, the AI investment boom reached a critical "tipping point" during the second quarter of 2026, shifting focus from semiconductor and software companies to power providers and infrastructure players.
Mayo raised his price targets for both Goldman Sachs and JPMorgan Chase following their recent earnings reports. Morgan Stanley is scheduled to release its financial results on Wednesday. The analyst noted that the clearest evidence of AI’s impact appeared in equities trading, where global capital flows and major transactions generated substantial revenue surprises.
JPMorgan Chase reported an 86% increase in equity trading revenue, reaching $6 billion. Goldman Sachs saw a 72% rise, bringing its revenue to $7.42 billion. Together, these figures exceeded analyst expectations by $4.4 billion. Bank of America also benefited, with equity trading revenue climbing 70% to $3.6 billion.
Investment banking fees also surged. Goldman Sachs reported a 55% jump to $3.4 billion, while JPMorgan Chase saw a 30% increase to $3.3 billion. This combined $1 billion surplus over expectations was driven by AI-related deals.
Goldman Sachs served as lead advisor on the SpaceX initial public offering and Alphabet’s $90 billion equity issuance. The firm also advised Dominion Energy on its sale to NextEra Energy.
Bank of America’s investment banking fees rose 50% to $2.1 billion. Soofian Zuberi, president and co-head of Global Markets at Bank of America, told CNBC that investors are broadening their search for AI beneficiaries beyond the United States. Capital is flowing into Asian markets, including South Korea, Taiwan, and Japan, as American clients diversify allocations.
