Three Giant Banks Rule the AI Stock Boom
Wall Street's largest banks pulled in $52 billion this year by funding big AI trades.
Big banks control the money behind the artificial intelligence boom. Regular investors buy shares of tech companies. Wall Street giants fund the massive bets behind the scenes.
Goldman Sachs and its two top rivals generated $52 billion from stock trading this year. They now control 80% of that market. Hedge funds want to trade tech stocks in huge sizes. To make those trades, the funds borrow billions of dollars from these banks.
The banks collect steady fees on that borrowed cash. They also handle the buying and selling of the shares. Smaller firms cannot match their size, so the business stays at the top.
Tech stocks move quickly, but these big lenders profit either way. Smart investors watch the firms that collect the tolls.
Source: CNBC
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