The Goldman Sachs Group, Inc. (GS) Is Experiencing A Lot Of Momentum, Believes Jim Cramer
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the .
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the largest investment banks in the world. The shares have gained 11.5% year-to-date as investors look to increased capital markets activity. The investment banking industry has been suffocated for quite some time as high rates and sluggish economic activity have raised the stakes for firms to go public or conduct mergers and acquisitions. 2025 has seen a couple of IPOs hit the market, and The Goldman Sachs Group, Inc. (NYSE:GS)'s shares are reflective of the easing market. Cramer commented on these trends:
'I think that it's project momentum over at Goldman. I think that they're doing incredibly well. I know David had been tepid about the deal flow and that you also said that IPOs really don't matter.'
In his earlier remarks about The Goldman Sachs Group, Inc. (NYSE:GS), Cramer discussed the IPO market and the government's policies:
'If you take a step back for a second and consider the theme in the aggregate, it's a very easy time to play an uptick in IPOs, just buy the investment bank that's the best under the sun and that's Goldman Sachs. Now, of the big banks, they're the most levered to investment banking, and that includes IPOs and underwriters. We've owned Goldman Sachs for the Charitable Trust since late last year, primarily because I thought we'd see an uptick in deal activity this year as the Trump administration replaced the Biden administration.
A close-up of a financial advisor giving advice to a customer, demonstrating the importance of consumer and wealth management.
But as it became clear that the new Trump administration was going to prioritize tariffs over its more pro business policies, that's a real negative for both IPOs and M&A, this thing pulled back hard, only falling nearly 35% from peak to trough by the time it bottomed at $440 [on] April 7th. Since then, though, Goldman's been rallying hard in part because of the IPO market bouncing back and also because there's been a pickup in mergers and acquisitions….
While we acknowledge the potential of GS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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