Goldman and JPMorgan Become AI Stocks as Banks Finance AI Buildouts
Key Summary
Goldman Sachs and JPMorgan are becoming artificial intelligence stocks due to their financing and deal work in the buildout of AI projects, according to PSP Growth's Momei Qu. Banks are tying their earnings to the buildout, despite not showing it yet, and are expected to play a key role in future mergers and IPOs.
Banks Financing AI Buildouts
Momei Qu, head of venture at PSP Growth, says Goldman Sachs and JPMorgan are becoming artificial intelligence (AI) stocks. Financing and deal work tie them to the buildout, though earnings do not show it yet. Qu told Bloomberg's The Close that banks now touch AI through debt financing for the buildout. They also take part in potential initial public offerings (IPOs) and mergers. She expects banks to sit at the center of more mergers as that activity rises.
Lending Profit and Net Interest Income
JPMorgan, Citigroup, and Wells Fargo posted a record $56.5 billion in combined net interest income, Bloomberg reported. Meanwhile, Jefferies analyst David Chiaverini said JPMorgan cited higher rates and balance sheet growth for its net interest income outlook. Its $107 billion guide, excluding markets, topped the $103 billion consensus. He also noted slower buybacks at JPMorgan and Citigroup, with JPMorgan's capital ratio down in the quarter. Even so, Citigroup fell 5.6% despite beating profit estimates, its biggest drop since April 2025.
AI Valuations and IPOs
Qu said investors split into two camps on AI valuations. One camp gives AI firms a pass on margins and capital spending because revenue is growing so fast. In contrast, the other camp expects public markets to demand higher margins and proof that spending pays off. Anthropic holds its pre-IPO investor day on Wednesday. Qu expects speculation over which camp prevails until the company lists. She said other AI companies may wait to list until they see how markets price the leaders.
Bloomberg Intelligence analyst Herman Chan expects Anthropic IPO deal flow to lift Goldman Sachs and Morgan Stanley. Goldman's stock price is down substantially over the last 3 months. Source: Trading View Chan also says banks structure bonds that fund data center buildouts, so slower AI spending could cut fee revenue. Separately, billionaire Paul Tudor Jones warned that a flood of AI listings could make 2027 difficult for US stocks. Banks that fund and underwrite those listings could therefore share in any repricing of AI valuations.