AI Investment Boom Lifts Investment Banking as Goldman Hits Record High

Generative AI is driving investment in data centers, chips and cloud services while boosting demand for technology-sector fundraising, mergers and acquisitions, and equity trading. The resurgence has revitalized investment banking. Goldman Sachs has emerged as a focal point of the financial-stock rally because of its strength in AI and technology-stock trading, reflecting expectations of higher related revenue.

Goldman shares had risen more than 80% over the past year as of the latest report and reached a record high, although analysts said the stock's valuation had become elevated. JPMorgan Chase and Bank of America offer similar fundamentals at lower valuations, making them potential catch-up plays among major U.S. bank stocks.