Famed hedge fund investor Paul Tudor Jones says the AI-fueled market rally can go for another 2 years

• Paul Tudor Jones expects up to two more years of the AI-powered bull market.
• The hedge fund investor highlighted AI "productivity miracles" as a major catalyst.
• He compared Anthropic's Claude Code to Microsoft's early PC advancements of the 1980s.

Paul Tudor Jones isn't running from the AI trade.

Talk of a painful pullback in the red-hot tech sector has swirled this year as the market logs fresh gains. The Nasdaq 100 is up 18% in the last month alone, but the billionaire hedge funder doesn't think we're near the peak yet. In fact, there could be years of AI-fueled gains ahead still.

"If you look at multiples and earnings, we're kind of where we were in October -November of '99," he told CNBC. "We've got another two years to run."

Jones referred to "productivity miracles," key inflection points for the tech sector like the early PC advancements of the 1980s that boosted stocks like Microsoft and gave rise to a new era of tech-led market growth.

In the case of the modern AI market, Jones said he sees a strong possibility that the leading startups behind it could be destined for a similar trajectory to the early PC leaders. He said the debut of Claude Code could be thought of as analogous to Microsoft's release of its Windows operating system, which eventually allowed the internet to be used for commercial purposes.

Jones also highlighted a similarity he sees between today's market and the 1999 bull market. He recalled that during that pivotal year, the Federal Reserve held off on tightening interest rates due to Y2K concerns. This helped boost tech stocks as the early dot com boom boosted markets and he thinks a similar scenario could play out in 2026.

While he's bullish on the trajectory for the coming years, Jone acknowledged that a pullback could be painful whenever one occurs. He flagged the potential for "breathtaking" corrections if the market continues to grow at the pace he predicts.