Goldman Sachs strategist Ben Snider says the increase in U.S. equity supply driven by artificial intelligence spending is more a return to normal than a market-threatening boom. U.S. corporations raised a record $252 billion through IPOs, follow-on offerings, convertible securities and SPACs in the second quarter, topping the previous quarterly record of $234 billion set in early 2021. AI-related companies accounted for roughly 40% of U.S. follow-on equity volume this year, and Goldman expects 2026 to set a dollar record for U.S. corporate equity issuance at roughly $700 billion. However, the bank notes that issuance relative to market size remains below historical averages, and corporate buybacks are expected to reach $1.4 trillion this year, more than offsetting new supply. Goldman describes equity issuance as a "headwind but not a gale."
Goldman Sachs Group IncGoldman strategist's analysis highlights record equity issuance and buybacks, reflecting capital markets activity beneficial to its investment banking.
Meta Platforms Inc.
