👉 Goldman’s Equities Desk Jumped +72%

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Goldman Sachs reported its second-highest quarterly revenue in company history as strong client activity across investment banking and equities catalyzed immense growth. The firm generated an 18.7% return on equity and 20.5% return on tangible equity, despite absorbing approximately $450.0 million from an accelerated charitable contribution during the quarter. Excluding that contribution, management said ROE would have been approximately 20%.

Global Banking & Markets remained the primary growth engine, generating $13.5 billion in revenue, an increase of 32% YoY. Equities revenue surged 72% to $6.4 billion, driven by record financing revenue and significantly stronger derivatives activity. Investment banking fees increased 21% to $3.2 billion, including record advisory revenue of $1.7 billion as completed M&A activity accelerated and equity underwriting benefited from stronger IPO and secondary issuance.

Asset & Wealth Management revenue increased 14% to $5.05 billion, supported by record management fees as assets under supervision reached a record $4.1 trillion. The business generated $97.0 billion of long-term net inflows during the quarter, marking its 35th consecutive quarter of inflows, while alternative assets under supervision reached a record $491.0 billion.

Management emphasized that the investment banking environment remains constructive despite geopolitical uncertainty and higher interest rates. Goldman advised on $1.5 trillion of announced M&A transactions year-to-date, maintaining its number-one global position. CEO David Solomon also highlighted private-equity sponsor activity as a meaningful future tailwind, noting that sponsor dealmaking has remained unusually subdued and should eventually normalize.

Looking ahead, Goldman does not provide traditional quarterly revenue or earnings guidance, but management raised its full-year alternative-asset fundraising expectation to roughly $150.0 billion and expects a full-year effective tax rate of approximately 20%. The firm also sees a substantial long-term opportunity financing AI infrastructure, which management estimates could require more than $10 trillion of investment through 2032.

No position.

JPMorgan Chase reported another strong quarter as growth across consumer banking, investment banking, equities trading and wealth management pushed revenue up high single digits YoY.

Consumer & Community Banking revenue increased 9% to $21.2 billion, with Card Services & Auto revenue climbing 15% as higher card balances, yields and auto leasing income supported growth. Debit and credit card spending increased 10%, while JPMorgan added more than 650,000 net new checking accounts and retained the number-one U.S. retail deposit position for the sixth consecutive year.

Commercial & Investment Bank revenue increased 14% to $22.7 billion. Investment banking fees grew 14%, Payments revenue increased 14%, and Markets revenue climbed 15%. Equities was the standout, surging 49% to approximately $5.0 billion behind strength in Prime and Derivatives, while Fixed Income declined 4% as commodities, rates and credit activity softened.

Asset & Wealth Management revenue increased 14% to $6.9 billion, with assets under management reaching $5.2 trillion and total client assets hitting $7.9 trillion. The business generated $263.0 billion of client asset net inflows during the quarter. Management also emphasized its decision to reduce share repurchases in order to retain more capital for investments in the franchise and client opportunities where it believes returns can be more attractive.

Looking ahead, management expects fourth-quarter net interest income excluding Markets of approximately $25.5 billion and total net interest income of roughly $28.0 billion. JPMorgan also introduced an initial 2027 outlook calling for approximately $107.0 billion of net interest income excluding Markets, while Jamie Dimon continued to caution that sticky inflation, elevated asset prices, rising rates and geopolitical uncertainty leave a wide range of potential economic outcomes.

No position.

TSMC reported another record quarter as relentless AI demand and continued adoption of its most advanced manufacturing technologies pushed revenue to $46.7 billion. Operating margin reached 58.7%, while the company once again exceeded the high end of its revenue guidance despite the significant costs associated with ramping its newest manufacturing nodes.

High Performance Computing remained the overwhelming growth engine, increasing 22% sequentially and representing 68% of total revenue, up from 57% last year. Smartphone revenue increased 10% sequentially and represented 21% of sales, while Automotive grew 23% and IoT increased 5%.

TSMC's technology mix also continued shifting toward its most advanced nodes. 3-nanometer represented 33% of wafer revenue, 5-nanometer accounted for 28%, and the newly ramping 2-nanometer process already contributed 8%. Altogether, advanced technologies of 7-nanometer and below represented 79% of wafer revenue. The aggressive 2-nanometer ramp did create some near-term margin pressure, reducing gross margin sequentially to 66.4%.

Management emphasized that AI demand remains far above TSMC's current ability to supply customers, with growth broadening beyond AI accelerators into agentic AI CPUs and networking chips. CEO C.C. Wei said the company's previous expectation for AI accelerator revenue to grow at a mid-to-high 50% CAGR through 2029 could ultimately prove conservative. TSMC is responding by maintaining its massive $60.0 billion to $64.0 billion 2026 capital expenditure plan and expects investment from 2026 through 2028 to significantly exceed the prior three-year period.

Looking ahead, management expects fourth-quarter revenue between $52.3 billion and $54.3 billion alongside a gross margin between 65% and 67% and an operating margin between 56.5% and 58.5%. TSMC also raised its full-year outlook and now expects 2026 revenue to increase approximately 44% in U.S. dollar terms.

Long TSM.

“When you are building a new type of technology company there will be periods of time when the market misunderstands and acts irrationally. We are confident in our backlog which more than supports all of our debt obligations.”