AI Investment Boom helped Wall Street’s biggest banks deliver record quarterly revenue as surging demand for artificial intelligence projects fuelled trading, investment banking and corporate financing.

Goldman Sachs and JPMorgan Chase reported their strongest quarterly revenue on Tuesday, driven by sharp increases in equities trading and advisory fees linked to the rapid expansion of AI-related investments.

Goldman Sachs increased revenue by 39% to $20.3 billion, while JPMorgan Chase posted a 27% rise to $58 billion.

JPMorgan Chief Financial Officer Jeremy Barnum said artificial intelligence now influences financial markets worldwide, creating strong demand for trading, public listings and investment activity across multiple regions.

He said the market had experienced heavy activity, including major initial public offerings, index rebalancing and increased investment across Asia, with AI playing a significant role in driving capital flows.

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The results suggest that the AI boom is generating opportunities well beyond technology companies and semiconductor manufacturers. Banks are advising on AI-related mergers and acquisitions, financing data centres and power infrastructure, underwriting debt and equity offerings, and supporting increased trading volumes.

Goldman Sachs Chief Executive Officer David Solomon said the rapid expansion of AI investment had created financing opportunities across industries and regions.

He described the current period as an AI capital expenditure super cycle, with growing demand for financing across multiple asset classes worldwide. Solomon added that Goldman expects the investment cycle to continue for another three to five years.

Investors welcomed the strong earnings, sending Goldman Sachs shares up about 8% in afternoon trading, while JPMorgan Chase gained around 2%.

Analysts said the AI investment cycle has expanded beyond software and chipmakers to include energy providers, infrastructure developers and financial institutions.

Wells Fargo banking analyst Mike Mayo said the AI investment boom reached a “tipping point” during the second quarter and identified Goldman Sachs, JPMorgan Chase and Morgan Stanley as among the biggest beneficiaries.

Trading operations produced some of the strongest results. JPMorgan’s equities trading revenue jumped 86% to $6 billion, while Goldman Sachs increased its equities trading revenue by 72% to $7.42 billion. Combined, the two banks exceeded analysts’ expectations by about $4.4 billion.

Bank of America also benefited from the surge, reporting a 70% increase in equities trading revenue to $3.6 billion.

Bank of America executive Soofian Zuberi said investors increasingly sought AI-related opportunities outside the United States, directing more capital towards markets in South Korea, Taiwan and Japan.

Investment banking also recorded robust growth. Goldman Sachs increased investment banking revenue by 55% to $3.4 billion, while JPMorgan posted a 30% rise to $3.3 billion. Together, the banks generated roughly $1 billion more than analysts had forecast.

During the quarter, Goldman Sachs advised on several major AI-linked transactions, including SpaceX’s initial public offering, Alphabet’s $90 billion equity issuance and Dominion Energy’s sale to NextEra Energy.

Bank of America reported a 50% increase in investment banking fees, reaching $2.1 billion.

Bank executives also said they are increasingly using artificial intelligence to improve internal operations, automate routine tasks and enhance efficiency while supporting long-term revenue growth.