Investment banks have enjoyed significant revenues from AI-related transactions, such as SK Hynix’s $26.5 billion ADR issuance and SpaceX’s unprecedented $86 billion initial public offering, alongside debt offerings.
However, July proved challenging for tech stocks, particularly microchip manufacturers, as investors grapple with high valuations and question the sustainability of the AI capital expenditure boom.
Multi-year cycle
“The development of AI infrastructure is still in its nascent phases, and we believe this multi-year investment trend will keep driving high levels of strategic engagement, financing, and capital generation across markets,” said Goldman Sachs CEO David Solomon during an earnings call. He noted that the sector “is amid an AI capex super cycle,” necessitating the use of every available financing tool.
Goldman Sachs was the lead left underwriter for the SpaceX IPO and is set to play a significant role alongside Morgan Stanley in the upcoming listing of Anthropic, as investors look to tap into the AI growth.
Competitor OpenAI has also announced plans for a US IPO.
Citigroup, which acted as a joint global co-ordinator for the SK Hynix transaction, generated over $70 million from this deal.
Citi CEO Jane Fraser informed investors during a conference call that AI was “dominating much of the dialogue,” with spending on technology, data centers, energy, and defense increasing.
Bank of America recently provided a $520 million credit line to OpenAI, marking its first loan to the AI enterprise, according to a source familiar with the situation, as reported by Reuters.
“In general, the US economy has proven to be more resilient than anticipated, bolstered by strong consumer spending, ongoing AI-driven investments, and falling energy costs, though inflation and tighter monetary policies represent notable risks,” said Bank of America CEO Brian Moynihan during a conference call.
BofA has facilitated nearly $500 billion in funding for AI-related firms since 2025, accounting for 60% of such fundraising across investment-grade debt, leveraged finance, and equity capital markets, based on internal data reviewed by Reuters.
“The AI-driven capex super cycle has positively impacted equity issuance, M&A activities, and debt financing,” remarked Stephen Biggar, director of financial services research at Argus Research.
Competing firm JPMorgan Chase has also engaged with AI-related companies for fundraising and is financing data centers.
Meta Platforms is collaborating with Morgan Stanley and JPMorgan Chase on a financing package of approximately $13 billion for a data center in El Paso, Texas, as reported by Reuters in May, citing a source familiar with the matter.
JPMorgan CFO Jeremy Barnum indicated that the firm is witnessing solid demand for capital expenditures and loans from companies not directly part of AI but with some indirect connections.
“It’s analogous to how discussions about data centers generate demand for plumbers and electricians; it manifests in somewhat non-obvious areas,” he noted.
Barnum added that it remains difficult to determine whether such demand is directly linked to AI.
