PSP's Venture Head: Goldman, JPMorgan Transforming Into AI Stocks

Goldman Sachs and JPMorgan are turning into AI plays, according to Momei Qu, who leads venture at PSP Growth. Their lending and advisory work connect them to the AI infrastructure build, she says, even if the earnings reports have not yet reflected that link.

In an interview with Bloomberg's 'The Close', Qu said the connection appears in the language banks use regarding AI, not in their financial statements.

Do Goldman and JPMorgan Really Qualify as AI Stocks?

Qu explained that banks currently engage with AI via debt deals for the infrastructure expansion. Additionally, they are involved in initial public offerings (IPOs) and merger transactions.

She predicts that banks will be at the core of a growing number of mergers as the dealmaking pace picks up.

Nevertheless, lending income stood out in the quarter. JPMorgan, Citigroup and Wells Fargo together reported $56.5 billion in net interest income, a record, according to Bloomberg.

Separately, Jefferies analyst David Chiaverini noted that JPMorgan attributed its net interest income outlook to elevated interest rates and balance sheet expansion. The bank's $107 billion forecast, which excludes markets activity, beat the $103 billion consensus.

Chiaverini additionally observed a deceleration in share repurchases at both JPMorgan and Citigroup, with JPMorgan's capital ratio declining during the quarter.

Despite this, Citigroup's stock declined 5.6% even though it exceeded earnings expectations, marking its largest fall since April 2025.

Will Anthropic's IPO Validate the AI-Bank Link?

Qu stated that investors are divided between two groups regarding AI valuations.

One group overlooks AI companies' profit margins and large capital expenditure since their revenue is expanding so quickly.

On the other hand, the second camp believes public markets will insist on stronger margins and evidence that the spending generates returns.

Anthropic is conducting its pre-IPO investor day on Wednesday. Qu anticipates that debate about which view will dominate will continue until the company goes public.

She noted that other AI firms might delay their listings to observe how the market values the early movers.

Bloomberg Intelligence analyst Herman Chan predicts that deal activity from an Anthropic IPO will benefit Goldman Sachs and Morgan Stanley.

Chan also points out that banks are arranging bonds to finance data center construction, meaning a slowdown in AI investment could reduce their fee income.

In a separate comment, billionaire Paul Tudor Jones cautioned that a surge of AI company listings might make 2027 difficult for US stocks.

Consequently, banks providing funding and underwriting for those listings could experience the effects of any revaluation of AI companies.