# Chip stocks are crashing but trading desks are booming — ride the rotation into big banks

_AI-generated trading idea · LONG · GS, JPM, KRE, XLF_

> Canonical page: https://commonquant.ai/research/for-you/chip-stocks-are-crashing-but-trading-desks-are-booming-ride--a796c767-8f4e-4f83-b968-f5d2ee9efc07

The stock market is experiencing a massive shift right now. Big banks like JPMorgan and Goldman Sachs just reported record-breaking profits from a surge in stock trading, driven by wild market volatility and a major sell-off in tech and chip stocks.

## Idea

JPMorgan and Goldman Sachs just reported their highest quarterly trading revenues ever because clients are panic-selling and repositioning their portfolios amid geopolitical chaos. At the same time, there is a massive sell-off in AI and semiconductor stocks. When tech stocks crash and volatility spikes, big banks make massive fees handling the trading chaos, creating a perfect environment to buy bank stocks while the selling pressure hits the rest of the market.

## Key details

- Symbols: GS, JPM, KRE, XLF
- Timeframes: D1
- Tags: \#banks, \#sector\_rotation, \#volatility

## Community

- Upvotes: 3
- Views: 0
- Copies: 0
- Cosigns: 0

## News sources

- [JPMorgan Sees Record Profit as Stock-Trading Climbs 86%](https://www.bloomberg.com/news/videos/2026-07-14/jpmorgan-sees-record-profit-as-stock-trading-climbs-86-video) — Bloomberg
- [Trillion Dollar Chip Rout Trains Spotlight on TSMC and ASML Results](https://www.bloomberg.com/news/articles/2026-07-14/trillion-dollar-chip-rout-trains-spotlight-on-tsmc-asml-results) — Bloomberg
- [Goldman Breaks Own Stock-Trading Revenue Record Again](https://www.bloomberg.com/news/videos/2026-07-14/goldman-breaks-own-stock-trading-revenue-record-again-video) — Bloomberg

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