5 Must-Buy Investment Bank Stocks to Thrive in a Bullish Industry Scenario

The investment bank industry has flourished in 2025 driven by increased client activities, a rebound in underwriting and advisory businesses, and the application of artificial intelligence. The Zacks-defined Financial – Investment Bank Industry is ranked in the top 4% and has provided 41.5% returns in the past year. Three giant investment bank stocks to buy are The Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM), and Citigroup Inc. (C), all of which have a Zacks Rank #1 (Strong Buy).

In 2025, the investment banking industry has shown remarkable resilience and growth, driven by increased client activities, a rebound in underwriting and advisory businesses, and the application of artificial intelligence. The Zacks-defined Financial – Investment Bank Industry ranks in the top 4% and has provided 41.5% returns in the past year. Three major investment bank stocks—The Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM), and Citigroup Inc. (C)—have all been given a Zacks Rank #1 (Strong Buy).

The recovery in 2025 follows a challenging period in 2022-2023 marked by market shocks and strategic miscalculations. The 2022 market collapse, driven by geopolitical disruption, extreme market volatility, inflation, and aggressive Fed rate hikes, forced major banks to significantly cut front-office headcount and suspend entry-level training pipelines. Many experienced professionals exited the industry, further weakening the talent pool [1].

The recovery in 2023-2024 was constrained by persistently high interest rates and falling productivity, limiting firms’ ability to rebuild teams. Early 2025 brought additional policy-driven uncertainty, with tariff announcements and government workforce reductions delaying critical hiring decisions during compressed seasonal recruiting windows. When deal activity accelerated in mid-2025, firms were left scrambling to staff mandates amid heightened market volatility and limited candidate availability [1].

Current indicators suggest the imbalance between demand and supply is growing more severe. Recruiting firms report activity levels running 50–70% above prior years, while the available candidate pool remains historically thin. Goldman Sachs has reportedly posted dozens of open roles across financial institutions, technology, and entertainment banking, while JPMorgan is said to be pursuing an unusually aggressive off-cycle hiring push. Offer timelines that once stretched several weeks are now routinely compressed to 48 hours, with candidates who have closed only a handful of transactions receiving multiple competing offers. Compensation pressures are rising, particularly at the mid-level, suggesting scarcity rather than abundance is setting pricing power in today’s talent market [1].

The industry has faced significant challenges, including the collapse of Silicon Valley Bank and Signature Bank in 2023, which created sustained uncertainty affecting capital markets activity. Despite these challenges, the industry has shown remarkable resilience, with the Zacks-defined Financial – Investment Bank Industry ranking in the top 4% and providing 41.5% returns in the past year. Three major investment bank stocks—The Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM), and Citigroup Inc. (C)—have all been given a Zacks Rank #1 (Strong Buy).

The application of artificial intelligence in investment banking has played a significant role in the industry's recovery. AI has been used to streamline processes, improve risk management, and enhance client services. The use of AI has allowed investment banks to operate more efficiently and effectively, even in a challenging market environment.

In conclusion, the investment banking industry in 2025 has shown remarkable resilience and growth, driven by increased client activities, a rebound in underwriting and advisory businesses, and the application of artificial intelligence. Despite significant challenges, the industry has shown remarkable resilience, with the Zacks-defined Financial – Investment Bank Industry ranking in the top 4% and providing 41.5% returns in the past year. Three major investment bank stocks—The Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM), and Citigroup Inc. (C)—have all been given a Zacks Rank #1 (Strong Buy).

References:
[1] Prospect Rock Partners. (2025). The Investment Banking Talent Wars Inside Q4 2025's Perfect Storm. Retrieved from https://prospectrockpartners.com/the-investment-banking-talent-wars-inside-q4-2025s-perfect-storm/