Goldman, JPMorgan and Morgan Stanley Capture $52 Billion in AI Trading Revenue
Updated
Updated · CNBC · Oct 21
Goldman, JPMorgan and Morgan Stanley Capture $52 Billion in AI Trading Revenue
3 articles · Updated · CNBC · Oct 21
Summary
$52 billion in stock-trading revenue has gone to Goldman Sachs, JPMorgan Chase and Morgan Stanley this year through Sept. 30, nearly 80% of the $67 billion earned by the five biggest investment banks.
AI-stock mania, looser U.S. capital rules and heavier prime-brokerage lending to hedge funds fueled the surge, turning equity desks into steadier, high-margin financing businesses.
Goldman’s equities financing revenue jumped 96% in the third quarter to a record $3.37 billion, while executives at JPMorgan and Morgan Stanley described similarly strong demand for leverage tied to AI bets.
Scale has widened the gap with smaller rivals: the biggest banks can absorb potential $100 million losses on single trades and have benefited from European banks’ retreat from equities.
The boom is also raising risk questions, with the IMF warning that leverage and crowded hedge-fund positions could threaten stability even as banks say collateral, stress tests and rapid margin calls contain the danger.