Wall Street legend Paul Tudor Jones predicts: The AI bull market still has one to two years, I have increased my holdings in AI stocks again

Tudor Investment founder Paul Tudor Jones stated in an interview that the AI-driven bull market may last another one to two years. He has recently continued to increase his holdings in AI-related stocks and compared the current market situation to Microsoft’s rise in the 1980s and the internet bubble on the eve of the 1990s, but also warned that a 40% further rise could trigger a shocking correction.
(Background summary: Morning Crypto Market Analysis — Bitcoin falls below 80k then fluctuates, RSI shows no bottom signal yet! Technical analysis: BTC holds the bull-bear line, ETH death cross warning sounds)
(Additional background: Tom Lee predicts ETH could reach $250k, with a conservative estimate of $22k! If Bitcoin closes May at $76k, a major bull market could be ahead)

Paul Tudor Jones, the founder of Tudor Investment, known for accurately predicting the 1987 stock market crash and called the “Wall Street legend,” said in an interview with CNBC’s Squawk Box on Thursday (the 7th) that the bull market driven by artificial intelligence (AI) in the US stock market could last another one to two years. He has also been increasing his AI-related stock holdings recently.

The AI productivity revolution is only halfway through

Paul Tudor Jones used historical analogy to describe the current AI boom stage. He pointed out that the breakthrough launched by Anthropic in January 2026 is similar to Microsoft launching MS-DOS in 1981, marking the start of a productivity revolution. The current level of AI commercialization and application can be compared to the period after Windows 95 was released in 1995, when the internet officially entered the mainstream market.

Those are the beginnings of productivity miracles lasting four to five and a half years. If I had to pick a point in time, I think we’ve only gone about 50% to 60%, and this rally could still last another one to two years.

Over the years, driven by leading chip manufacturers, cloud computing companies, and generative AI developers related to AI infrastructure, the S&P 500 has repeatedly hit record highs. Paul Tudor Jones believes this momentum has not yet dissipated in the short term.

Warning: A 40% further rise could trigger a “shock correction”

However, he also warned investors to be cautious of bubble risks. He pointed out that, based on market sentiment and valuation levels, the current environment is very similar to late 1999 (about a year before the dot-com bubble burst in 2000). If the stock market rises another 40%, the total market capitalization as a percentage of GDP could climb to 300% or even 350%.

You know that at some point in the future, the market could experience a breathtaking correction.

Nevertheless, Paul Tudor Jones said he has increased his investments in AI-related assets but did not disclose specific entry points or targets.

I am a macro trader, so I just buy a basket of assets. I can only say that this is a very, very crazy era… I always like to look for historical precedents.

He also warned about the long-term risks of artificial intelligence, believing that if AI develops without regulation, it could ultimately pose dangers to humanity. Governments around the world will eventually need to intervene and regulate.

The 71-year-old Paul Tudor Jones gained fame for accurately shorting and making a fortune before the 1987 “Black Monday” stock market crash. He is also a co-founder of the nonprofit organization Just Capital, which ranks US listed companies based on social and environmental indicators.