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

Billionaire hedge fund manager Paul Tudor Jones believes the artificial intelligence-driven bull market still has more room to grow, even as he warns that the eventual ending could bring a sharp correction. Speaking on CNBC, Jones said the current AI boom reminds him of earlier technology revolutions, including Microsoft’s early rise in the 1980s, the launch of Apple II, and the commercial internet wave of the mid-1990s. In his view, AI is still in the early stages of a major productivity cycle that could continue pushing markets higher for another year or two.

Jones compared today’s AI moment to past periods when new technologies reshaped the economy and created years of market growth. He said the rise of tools like ChatGPT, Claude, and Claude Code feels similar to the beginning of the personal computer era and the internet boom. Those earlier innovations helped launch productivity gains that lasted roughly four to five-and-a-half years. Based on that historical pattern, Jones said the current AI cycle may only be around 50% to 60% complete, meaning investors could still see more upside before the trend reaches its peak.

The AI rally has already had a major impact on the stock market. Large technology companies connected to chips, cloud computing, and generative AI have helped lift major indexes, while investor excitement around AI infrastructure continues to drive demand. Semiconductor stocks have been especially strong, with AI demand helping fuel gains across companies tied to computing power and hardware. The iShares Semiconductor ETF has surged 65% year-to-date, while companies such as Intel, Advanced Micro Devices, and SanDisk have recently reached 52-week highs.

At the same time, Jones warned that the market feels similar to 1999, shortly before the dot-com bubble peaked in early 2000. He said that when looking at valuations, earnings, and investor excitement, the current environment appears close to the late stages of that earlier technology boom. While he still believes the AI trade has more runway, he also warned that the correction could be “breathtaking” once the rally finally ends. If the stock market climbs another 40%, he said the stock market-to-GDP ratio could reach extremely high levels, creating the conditions for a serious pullback.

Jones also connected the AI boom to broader economic and policy questions. He said AI investment is adding strength to the economy, which could make it harder for the Federal Reserve to cut interest rates. He even suggested there may be a case for raising rates if economic data continues to show strength, especially with major AI spending and a large federal deficit. He downplayed the chances that Federal Reserve Chair nominee Kevin Warsh could quickly push for rate cuts this year, especially with political pressure building ahead of the midterm elections.

Despite the risks, Jones remains optimistic about the long-term potential of AI. He said the economy could enter an “age of abundance” by 2030, with robotics becoming much more common across daily life and industry. However, he also warned that governments will eventually need to regulate artificial intelligence because of the potential dangers it could create if left unchecked. For now, Jones’ message is balanced: the AI bull market may still have time left, but investors should remember that powerful technology booms can end with equally powerful corrections.

Works Cited

Li, Yun. “Paul Tudor Jones Says AI Bull Market Has ‘Another Year or Two to Run.’” CNBC, 7 May 2026, www.cnbc.com/2026/05/07/paul-tudor-jones-says-ai-bull-market-has-another-year-or-two-to-run.html. 

“Paul Tudor Jones Predicts AI Bull Market Extends.” Let’s Data Science, 7 May 2026, letsdatascience.com/news/paul-tudor-jones-predicts-ai-bull-market-extends-6e608586. 

Jain, Rounak. “Paul Tudor Jones Draws Apple II Parallel For ChatGPT, Claude Code, Says AI Trade Still Has Runway.” Stocktwits, 7 May 2026, stocktwits.com/news-articles/markets/equity/paul-tudor-jones-chatgpt-claude-code-apple-microsoft-ai-trade-how-much-time/cZXbgqaReQE. 

The Motley Fool. “A Bull Market Is Coming: 1 Artificial Intelligence Growth Stock to Buy Now.” The Motley Fool, 23 Apr. 2023, www.fool.com/investing/2023/04/23/bull-market-is-coming-1-ai-growth-stock-to-buy-now/. 

Li, Yun. “Paul Tudor Jones Says AI Bull Market Has ‘Another Year or Two to Run.’” CNBC, 7 May 2026, www.cnbc.com/2026/05/07/paul-tudor-jones-says-ai-bull-market-has-another-year-or-two-to-run.html. 

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