Paul Tudor Jones Forecasts Another One to Two Years of AI Bull Market

TLDR

• Paul Tudor Jones states the AI bull market likely has “another year or two to run.”
• He recently increased his holdings in AI-related stocks, opting for baskets of stocks instead of specific individual selections.
• Jones draws parallels between the current AI landscape and Microsoft’s 1981 PC debut as well as the 1995 internet surge.
• He estimates the current cycle is 50–60% complete and predicts the market could climb an additional 40%.
• Jones cautions that a correction might occur if stock market capitalization reaches 300–350% of GDP.

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(SeaPRwire) –   Billionaire hedge fund manager Paul Tudor Jones indicates that the artificial intelligence bull market still possesses growth potential. During an appearance on CNBC’s “Squawk Box” this Thursday, Jones revealed that he has recently purchased additional AI-related stocks and is convinced the rally is far from finished.

“I bought more AI stocks,” says @PTJ_Official. “It’s a crazy, crazy time.” https://t.co/H4o7BvY34M pic.twitter.com/ZSMVdqg02d

— Squawk Box (@SquawkCNBC) May 7, 2026

Jones explained explained that he prefers investing in groups of stocks rather than picking specific individual names. “I’m a macro trader, so I just buy baskets,” he stated.

He likened the ongoing AI surge to two previous technology-driven productivity cycles. The first instance was Microsoft’s ascent in the early 1980s, followed by the commercialization of the internet around 1995.

Specifically, Jones equated Anthropic’s Claude Code, which was released in January, with Microsoft’s 1981 introduction of the personal computer. He noted that both events signaled the beginning of widespread commercial adoption.

“Those were both the beginning of productivity miracles that lasted four to five and a half years,” Jones remarked.

He calculates that the AI cycle is currently 50% to 60% finished. Consequently, he believes the market has “another year or two to run.”

Similarities to the Late 1990s

Jones also drew a comparison between current market conditions and those of late 1999, roughly a year prior to the dot-com stock peak in early 2000. He observed that present valuation multiples and earnings metrics reflect that era.

He cited the impending election and the incoming Federal Reserve Chairman, Kevin Warsh, as elements that might maintain the status quo in monetary policy, much like Y2K fears restrained the Fed in 1999.

Jones expressed his belief that the market could potentially surge another 40% before hitting its peak.

Cautionary Signs on the Horizon

Despite his optimistic forecast, Jones cautioned regarding the potential risks ahead. He suggested that if stock market capitalization hits 300% to 350% of gross domestic product, a severe correction would likely ensue.

“You just know that there’ll be some breathtaking kind of corrections,” he warned.

Jones also highlighted concerns regarding the long-term dangers of artificial intelligence. He emphasized that governments must intervene with regulation, noting that unchecked AI could pose a threat to humanity.

Jones serves as the founder and chief investment officer of Tudor Investment Corporation. He is renowned for forecasting and capitalizing on the 1987 Black Monday crash.

Additionally, he chairs Just Capital, a nonprofit organization that evaluates U.S. public companies based on social and environmental metrics.

Jones offered these remarks at a conference prior to his Thursday CNBC appearance. He did not disclose the specific AI stocks he acquired or the precise timing of the trades.