Goldman Sachs and JPMorgan Chase Diverge on Quantum Computing Strategies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 26 2026
0mins
Source: seekingalpha
- Goldman Sachs Strategy Retreat: Goldman Sachs has significantly scaled back its quantum computing investments after internal research indicated that current hardware is far from delivering practical investment applications, reflecting a cautious stance that may impact its competitive position in future fintech developments.
- JPMorgan's Continued Investment: In contrast, JPMorgan Chase continues to invest heavily in quantum computing, maintaining a team of over 50 physicists and computer scientists focused on potential applications such as portfolio construction and cybersecurity, demonstrating an optimistic outlook on the technology's future.
- Quantum Computing Potential: While quantum computing is seen as a major breakthrough, many experts believe that its commercial applications may still be years away, and banks face challenges in proving short-term returns due to their exploration of various uses, including asset pricing and fraud detection.
- Industry Outlook Assessment: McKinsey estimates that quantum computing revenue could rise to $72 billion by 2035, although the industry acknowledges that early expectations were overly optimistic, emphasizing that the current push for quantum technology is more about future preparation than immediate profitability.
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Analyst Views on GS
Wall Street analysts forecast GS stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 925.870
Low
604.00
Averages
951.45
High
1100
Current: 925.870
Low
604.00
Averages
951.45
High
1100
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investment Earnings Example: Investing $1,000 in a one-year CD at 1.52% APY results in a year-end balance of $1,015.20, while a 4% APY CD would grow to $1,040.74, illustrating the significant impact of higher rates on earnings.
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- Long Road to Recovery: Even if the Strait of Hormuz reopens immediately, oil production in the Persian Gulf won't recover quickly, with S&P Global estimating that most wells may take up to seven months to restart, exacerbating the supply crunch.
- Investment Strategy Shift: Given the likelihood of sustained high oil prices, investors should consider reducing exposure to energy-intensive sectors while increasing allocations to oil stocks to prepare for potential fuel shortages and price hikes.
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- Rising Inflation Risks: The consumer price index for March showed an inflation rate of 3.3%, significantly above the Fed's 2% target, indicating inflation pressures are emerging beyond gasoline and tariffs, potentially forcing the Fed into a more hawkish stance.
- Market Expectation Shift: Traders have essentially removed the probability of a rate cut through April 2031, implying a stronger likelihood of rate hikes in the coming years, which simplifies the Fed's decision-making process, especially as current economic data supports holding rates steady.
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- Rising Non-Accrual Rate: The fund's non-accrual rate increased to 4.7%, up from 2.8% in the prior quarter, primarily driven by legacy loans underwritten before March 2022, indicating financial distress among certain borrowers.
- New Investment Commitments: Goldman Sachs BDC made new commitments of approximately $46.5 million across 17 companies in Q1, including six new borrowers, demonstrating an active search for investment opportunities despite current challenges.
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