AI to power the next bull run?

 

AI Is Sending Tech Stocks to the Moon

In the early 1990s, it was the internet. The world’s first website was launched in August 1991. Wall Street started to grow really excited about the internet’s economic potential. Internet stocks like Cisco (CSCO) and Oracle (ORCL) rose more than 100% in 1991. 

In the early 2020s, it is AI. The world’s first true AI application was launched in November 2022 with ChatGPT. Ever since, Wall Street has become obsessed with AI’s economic potential. Leading AI stocks like C3.ai (AI) have jumped more than 100% so far in 2023. 

The parallels are too strong to dismiss – and the comparison has strong implications for investors. 

The 1991/92 stock market crash and subsequent internet-powered rebound set the stage for the biggest tech bull market the world has ever seen. From 1992 to 1999, the entire Nasdaq Composite rallied nearly 600% as investors salivated over the long-term economic potential of the internet. 

We believe the data suggests that the 2022/23 stock market crash and subsequent AI-powered rebound similarly set the stage for a huge tech bull market to develop over the next several years. We wouldn’t be surprised to see the Nasdaq pop more than 500% between 2023 and 2030 as investors salivate over the long-term economic potential of AI. 

In other words, we think AI is about to power another dot-com boom in tech stocks. 

If so, savvy investors could make fortunes over the next few years.