Paul Tudor Jones says AI stocks still have room to run

The AI party isn’t over yet

Paul Tudor Jones just gave the AI bull market a very fancy thumbs-up — and a warning label. On CNBC, the Tudor Investment Corp founder said he’s still buying AI stocks in baskets and thinks the run could have another year or two left, with roughly 40% more upside before a “breathtaking” correction.

That’s not exactly your standard “stocks only go up” speech. Jones compared the current setup to the late-1990s dot-com boom, saying today’s multiples and earnings feel a lot like October or November 1999 — which, if your memory is working, was right before the whole thing went pop in March 2000.

Why the comparison matters

Jones isn’t just hand-waving at vibes. He’s arguing this cycle still has room because productivity booms tend to run for years, not months. He pointed to the PC rollout in the early 1980s and the internet’s commercial rise in the 1990s as the kind of tech shifts that take time to fully show up in profits.

In other words: if AI is really changing how work gets done, the market may still be pricing only the first inning, not the whole game.

But the Fed and politics are part of the script

Jones also said the Fed backdrop looks a lot like 1999, with policymakers acting cautiously even as the market runs hot. He tied that caution to today’s setup too, saying there’s no clear reason for rate cuts and that election-year politics could keep the monetary pedal from moving much.

He also threw in a warning that AI regulation is already behind the curve. Because of course the story around the most important tech wave in years is: giant money machine, potential bubble, and regulators trying to catch a train that already left the station.

Big picture: if you own the AI trade, Jones is basically telling you the upside may still be alive — but so is the kind of rug pull that makes even seasoned investors reach for the aspirin.