Goldman Sachs Group Inc. topped its four biggest US equity underwriting rivals in the third quarter, with equity capital markets revenue reaching $666 million, up 43% year-over-year. This growth was driven by stock sales from companies capitalizing on the artificial intelligence spending boom, including SK Hynix’s $26.5 billion US listing, Intel Corp.’s $23 billion stock sale, and large convertible bond deals for AI cloud firms Core Weave Inc. and Nebius Group NV. In contrast, Morgan Stanley’s equity underwriting fees fell 19% year-over-year, missing the SK Hynix deal and impacted by weaker IPO and block trade activity.
Citigroup showed the strongest improvement among rivals, with ECM revenue jumping 77% to $343 million, aided by its lead role in the SK Hynix offering. Despite some IPO delays due to interest rate pressures and AI stock volatility, overall ECM activity remained strong, with the five largest banks’ combined fees rising 13% to $2.5 billion — their second-best quarter since 2021. Goldman Sachs CEO David Solomon noted that ECM revenues are running meaningfully above five- and ten-year averages, calling AI infrastructure a “real good ballast” for future activity.
Morgan Stanley CEO Ted Pick acknowledged AI’s long-term potential, citing $1 trillion in annual infrastructure spending, while noting market timing challenges. Jane Fraser of Citigroup highlighted a solid pipeline and stable macro conditions as supportive of continued strength.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing