Demand for Carbon Removal Credits Soars for Microsoft and Google Drive Amid Growing AI Adoption
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2025
0mins
Should l Buy JPM?
Source: TipRanks
Rising Demand for Carbon Removal Credits: Large firms, including Microsoft and Alphabet, are increasingly purchasing high-quality carbon removal credits to mitigate the environmental impact of AI data hubs, leading to a tight supply and rising prices.
Significant Investment in Carbon Capture: Since 2019, major companies have invested over $10 billion in carbon capture projects, with prices for these credits now nearly four times higher than those linked to forest plans.
Supply Challenges and Market Adaptation: The limited availability of carbon removal credits, particularly biochar, has led firms to consider creating their own credits and establishing long-term deals to secure supply and funding for new projects.
Future Outlook for Carbon Credit Market: The ongoing demand, driven by the expansion of AI and reliance on fossil fuels, is expected to attract more investment and encourage the development of additional carbon removal sites to bridge the supply-demand gap.
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Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JPM is 341.38 USD with a low forecast of 260.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 310.160
Low
260.00
Averages
341.38
High
400.00
Current: 310.160
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
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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- Valuation Concerns: Despite the strong earnings, George noted that JPMorgan's stock trades near 3x tangible book value, suggesting limited margin for disappointment, thus making the risk/reward profile more reasonable but unattractive for new investments.
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See More
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- Increased Pressure on Software Sector: The introduction of new AI tools by Anthropic has triggered a sell-off in software data provider shares, intensifying uncertainty in the private credit market, particularly regarding lending risks to software companies.
- Decline in Asset Management Stocks: Ares Management fell over 12%, Blue Owl Capital dropped more than 8%, and KKR and TPG saw declines of nearly 10% and 7%, respectively, reflecting investor concerns about AI's potential impact on cash flows and default risks.
- Rising Default Risks: UBS Group has warned that in an aggressive disruption scenario, default rates in U.S. private credit could rise to 13%, significantly higher than the projected stress for leveraged loans and high-yield bonds, estimated at 8% and 4%, respectively.
- Liquidity Issues Intensified: Although strains in private credit predate AI concerns, Jeffrey C. Hooke noted that existing liquidity and loan extension issues have been exacerbated by recent developments, adding new challenges to an already pressured sector.
See More
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- Issuer Transition: In early 2026, JPMorgan Chase was selected as the new issuer of the Apple Card, taking over from Goldman Sachs, which stated that this move would help it narrow its business focus, highlighting Apple's ongoing expansion in consumer finance.
- Market Position: JPMorgan Chase is the largest credit card issuer in the U.S., managing approximately 150 million credit cards, while the Apple Card has over 12 million users; although this addition is modest, it still presents new cross-selling opportunities for the bank.
- User Demographics: Research indicates that Apple Card users are predominantly aged 20 to 40, accounting for about 70% of the user base, which allows JPMorgan Chase to effectively promote its premium credit card products, such as the Chase Sapphire Reserve, thereby enhancing customer loyalty.
- Future Outlook: While the specific financial terms of JPMorgan Chase's acquisition of the Apple Card business remain unclear, this partnership is expected to bring a significant influx of new customers to the bank, potentially invigorating its stock and strengthening its competitive position in the market.
See More
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- Issuer Transition: In early 2026, JPMorgan Chase was selected as the new issuer of the Apple Card, taking over from Goldman Sachs, with the transition expected to take around two years, marking a new chapter in Apple's consumer finance venture while reflecting Goldman’s strategic refocus.
- Market Share Expansion: As the largest credit card issuer in the U.S., JPMorgan Chase currently provides credit for approximately 150 million cards, while the Apple Card has over 12 million users; although this addition is not dramatically impactful, it presents significant cross-selling opportunities for Chase.
- User Demographics: Research indicates that Apple Card users are predominantly aged 20 to 40, accounting for about 70% of the user base, which provides JPMorgan Chase with a prime opportunity to market its higher-end products, such as the Chase Sapphire Reserve, to this younger demographic, enhancing customer loyalty.
- Future Outlook: While the specific financial details of JPMorgan Chase's acquisition of the Apple Card business remain unclear, this partnership is expected to bring a substantial number of new customers to Chase, potentially invigorating its stock and boosting market confidence in its growth prospects.
See More
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- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
See More
