Goldman Sachs and Citigroup report strong earnings from AI-driven capital raising, including a $26.5 billion ADR and $86 billion IPO.
Wall Street banks are generating significant fees from a surge in AI-related dealmaking and financing, driven by tech companies investing heavily in infrastructure. Goldman Sachs and Citigroup highlighted lucrative deals, including SK Hynix’s $26.5 billion ADR offering and SpaceX’s $86 billion IPO, as key contributors to revenue growth.
The AI capex cycle is expected to extend for years, with Goldman Sachs CEO David Solomon calling it a ‘multi-year investment cycle.’ Citigroup earned over $70 million from the SK Hynix deal alone, while Goldman Sachs is poised to lead Anthropic’s upcoming IPO, signaling sustained demand for AI exposure.
Despite the optimism, July has seen volatility in tech stocks, particularly among microchip makers, as investors question valuations and the durability of the AI spending boom.