Goldman Sachs, JPMorgan and Morgan Stanley are dominating the AI stock boom. Here's their edge
Article excerpt
In this article Fueled by the global boom in artificial intelligence stocks, relaxed capital rules and greater lending to hedge funds, big Wall Street banks have already had a banner year for equities trading - even with one quarter left to go. The five biggest investment banks have generated about $67 billion in equities revenue through Sept. 30, according to company filings. That is $7 billion more than what the group made during all of 2025, which itself was a record haul. But it's Wall Street's Big Three that have captured the largest slice of what is shaping up to be the industry's most lucrative arena: Goldman Sachs, JPMorgan Chase and Morgan Stanley have made a combined $52 billion in stock trading revenue so far this year, nearly 80% of the total. "When it comes to the AI mega trade, the Big Three consider each other their main competitors, and that's pretty much it," Mike Mayo, Wells Fargo banking analyst, told CNBC. "They've been best positioned to take advantage of this market." Wall Street banks are experiencing an epic run of blockbuster profits as the total value of the stock market balloons and trading activity from institutional and retail investors rises across stocks, ETFs and derivatives. Helping drive this activity are the loans that the banks, through their prime brokerages, are extending to hedge funds so that they can amplify their bets. Prime...
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At Goldman Sachs, equities financing activities jumped 96% in the third quarter to a record $3.37 billion.
