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Goldman Sachs Sees AI Boom Driving $10T Investment
15 Oct
Summary
- Goldman Sachs revenue increased year-over-year in Q3.
- CEO Solomon predicts AI infrastructure will need $10T.
- Equities revenue surged 72% driven by derivatives.
Goldman Sachs announced a year-over-year revenue increase for the third quarter. CEO David Solomon noted that while interest rate shifts present market challenges, the U.S. economy, corporate earnings, and labor market remain resilient.
Capital markets activity has shifted from a top-decile environment to a top-quartile environment, which Solomon described as still "really, really good." The firm's Global Banking & Markets division saw significant growth, with equities revenue jumping 72% to $6.44 billion, fueled by strength in derivatives intermediation and financing.
Looking forward, Solomon projected that U.S. data center build-outs for artificial intelligence could require over $10 trillion in investment through 2032. He pointed out that client demand for compute capacity currently outstrips supply, creating opportunities for the bank to finance infrastructure projects.
Addressing internal matters, Solomon confirmed there is no succession transition or timeline currently underway at the firm. Goldman Sachs' stock performance showed a 15.72% increase over the past year.
