Hedge fund legend Paul Tudor Jones sees more room for AI-driven market gains

Billionaire investor Paul Tudor Jones believes the artificial intelligence boom still has gas in the tank, telling CNBC he recently added to his AI stock positions. The hedge fund veteran draws parallels between today’s AI wave and two earlier tech transformations: Microsoft’s early dominance in the 1980s and the internet’s commercial takeoff in the mid-1990s.

“I think Claude, January of this year, would be the equivalent of when Microsoft came out in ’81,” Jones said on “Squawk Box.” He compared the current AI adoption phase to 1995, when Windows 95 launched alongside surging internet usage. “Those were both the beginning of productivity miracles that lasted four to five and a half years. We’re kind of, I’d say, 50 or 60%. If I had to pick a period, we’ve got another year or two to run.”

Jones’s optimism reflects a broader market trend. The S&P 500 has hit repeated record highs as investors pour capital into chipmakers, cloud infrastructure firms, and generative AI developers. Megacap tech companies tied to AI have led the rally, driven by expectations that the technology will reshape industries and boost productivity.

Jones, who famously predicted and profited from the 1987 crash, declined to name specific stocks but said he buys baskets of AI-related companies. He also chairs Just Capital, a nonprofit ranking U.S. companies on social and environmental performance. For business leaders tracking AI infrastructure and ML deployment, Jones’s historical lens suggests the current cycle may still have room to run — but the clock is ticking.

Source: CNBC