Paul Tudor Jones Says AI Bull Market Has Room to Run

CNBC reported Thursday that billionaire hedge fund manager Paul Tudor Jones, founder and chief investment officer of Tudor Investment, believes the AI bull market still has one to two years of upside remaining. Jones made the remarks on CNBC’s Squawk Box and disclosed he has recently added AI-related stocks to his portfolio.

Jones Draws a Historical Road Map

Jones placed the current AI investment cycle alongside two earlier technological revolutions. He compared recent advances in artificial intelligence to Microsoft’s software dominance in the early 1980s and to the rapid commercialization of the internet around 1995. Both periods, he argued, triggered multi-year productivity booms and sustained equity rallies. Jones described Anthropic’s Claude model, which gained widespread attention in early 2025, as roughly equivalent to Microsoft’s initial software breakthrough. He estimated the current AI cycle is perhaps 50 to 60 percent complete, giving the rally another year or two before it exhausts itself.

Late-Cycle Warning Signals

Even as Jones expressed confidence in the near-term trajectory, he flagged meaningful risks ahead. He framed the present moment as resembling 1999, roughly one year before dot-com valuations collapsed in early 2000. Should equity markets climb another 40 percent from current levels, he warned, the ratio of stock market capitalization to GDP could reach extraordinary heights. That kind of overshoot, Jones suggested, would set the stage for sharp and painful corrections once sentiment shifts.

The Broader AI Rally in Context

The S&P 500 has posted repeated record highs over the past several years, propelled in large part by investor enthusiasm around artificial intelligence. Chipmakers, cloud computing providers, and generative AI developers have attracted the heaviest inflows. Jones, a self-described macro trader who favors broad-based baskets of securities over individual stock picks, said he did not disclose which specific names he purchased or the precise timing of those trades. He called the current environment “a crazy, crazy time” while stressing that historical precedent remains his primary guide.

Regulatory Risks Loom on the Horizon

Jones did not limit his remarks to market mechanics. He expressed personal concern about unchecked AI development posing broader risks to society. Governments will eventually need to step in with meaningful regulation, he said, before the technology creates dangers that markets alone cannot price or prevent. Jones rose to prominence after correctly anticipating and profiting from the Black Monday crash of 1987. He also chairs nonprofit Just Capital, which scores large U.S. companies on environmental and social criteria.

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