Paul Tudor Jones Says AI Bull Market Has Room Left to Run

Billionaire hedge fund manager Paul Tudor Jones, founder and chief investment officer of Tudor Investment, told CNBC Thursday that the AI bull market is not finished and he has been adding to his positions.

Jones Places AI in the Middle Innings

Speaking on CNBC’s Squawk Box, Jones argued the current AI-driven rally is roughly halfway through its run. He estimated the market is about 50 to 60 percent of the way through the cycle. In his view, that leaves roughly one to two years of further upside.

He drew a direct parallel to two earlier technological inflection points. The arrival of Microsoft’s foundational software in the early 1980s and the mainstream adoption of the internet in the mid-1990s both triggered multi-year productivity booms lasting between four and five years. Jones suggested the rapid advancement of large-language AI models follows a similar arc.

Jones said he has been buying AI-related stocks, though he declined to name specific holdings. He described his approach as purchasing broad baskets rather than individual names, consistent with his macro-trading background.

A Historical Parallel With a Warning

While Jones remains bullish near-term, he drew a pointed comparison to 1999, roughly a year before dot-com valuations collapsed in early 2000. He cautioned that if equity markets advance another 40 percent from here, the ratio of market capitalisation to GDP could approach 300 to 350 percent. At that level, he said corrections of a severe and rapid nature become very likely.

The warning was not a signal to exit. Jones framed it as a structural risk to monitor rather than an imminent trigger.

AI Regulation Comes Into Focus

Beyond market dynamics, Jones expressed concern about the long-term trajectory of the technology itself. He suggested governments will need to impose meaningful oversight before AI development reaches a point that poses broader societal risks. He stopped short of specifying what regulatory framework he would support.

The S&P 500 has posted repeated record highs over recent years, lifted substantially by investor enthusiasm for AI infrastructure. Chipmakers, cloud providers and generative AI developers have anchored much of the rally’s leadership.

Jones is widely known for anticipating and profiting from the Black Monday crash of 1987. He also chairs Just Capital, a nonprofit that scores public US companies on social and environmental performance.

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