It's 1995 for AI

Artificial intelligence (AI) stocks are flying again.

Nvidia (NVDA) has jumped 110% since April…

GE Vernova (GEV) has soared 147%...

And Palantir Technologies (PLTR) has surged 160%.

As usual, the big moves have many so-called “experts” warning, “AI is a bubble.” Some are even comparing today’s AI boom to the dot-com crash of 2000.

They couldn’t be more wrong.

Let me show you why the AI bull market has plenty of steam left… and how we’ll profit from the next phase.

• It’s 1995 for AI.

Back in 1995, web browsing pioneer Netscape went public. Its stock soared +500% in a few months and lit the spark for the internet age.

But here’s what most folks forget. The real investing mania didn’t arrive until years later. Amazon (AMZN) didn’t IPO until 1997. Google (GOOG) wasn’t founded until 1998. And Pets.com didn’t become a punchline until 1999.

Most important, the Nasdaq soared 8X from 1995 to 2000.

Could the Nasdaq gain over 700% again from 2025–2030?

That’s a tall order, and it would require a bubble forming. But we’re years away from having to worry about that. Your #1 priority right now should be buying the best individual AI stocks—the ones that will give 1995 internet stocks a run for their money.

• Like the mid-'90s, we’re still in the infrastructure phase.

Back then, billions flowed into laying fiber-optic cables, building data centers, and wiring America for broadband. That infrastructure spending is what set the stage for Amazon, Google, and the rest of the dot-com giants to flourish.

Today, the same playbook is unfolding in AI—only bigger.

The richest corporations in history are plowing unprecedented billions into infrastructure that powers AI.

Amazon will spend $100 billion on data centers this year. Microsoft (MSFT) is set to drop nearly $80 billion. Google and Meta Platforms (META) aren’t far behind.

Big tech is locked in an arms race to see who can build a “digital god” first.

• And let’s not forget, the government has its own AI arms race to win…

Both the current and previous administrations have made it clear: the US must “win the AI race.”

What exactly does that mean? It boils down to one thing: a firehose of government funding aimed at the AI sector. They call it “sovereign AI.”

The CHIPS Act alone will plow some $280 billion toward semiconductors and supercomputing. Here in Abu Dhabi, the government is also pouring tens of billions of dollars into AI data centers. Saudi is doing the same thing.

This is only the beginning. Every country will want to be an “AI superpower.”

At the same time, President Trump’s AI Action Plan is tearing down red tape, fast-tracking data center permits, and warning states that noncompliance could cost them federal funding.

That’s the beauty of investing in AI today. Both the government and corporations are plowing unprecedented amounts of money into this sector. Drink from that firehose.

• Spending on AI infrastructure could 5X in the future.

At the peak of the railroad boom in the 1800s, the US government spent the equivalent of 6% of GDP laying down tracks.

That buildout ignited the American Gilded Age and the fortunes that followed.

Today, AI spending sits at just 1.2% of GDP—but that only includes data center spending.

What it doesn’t include is networking gear, cooling equipment, storage systems… and upgrading the power grid to handle AI’s insatiable demand for energy.

By our calculation, the US could end up spending up to $1.8 trillion annually on AI infrastructure, or about 6.3% of GDP.

• Here’s when to exit AI stocks.

I call it the “IPO curse.”

I’m struck by how many times the leading company in a hot sector has gone public and marked “the top”…

• The AOL Time Warner merger in 2000—still the largest ever—culminated in the dot-com bust.

• The Blackstone (BX) IPO in 2007 coincided with the top for financial markets and preceded the Great Recession.

• Glencore’s (GLNCY) 2011 listing marked the peak in the commodity super-cycle.

In short: I’m waiting for a high-profile AI firm like OpenAI or Anthropic to go public before declaring the AI bull market over.

But I see no indication of that happening anytime soon.

Of course, you have to buy the right AI stocks.

• Here’s how to profit from this stage of the AI boom...

If we go back to our railroad example from earlier, history shows the biggest gains went to the companies benefiting from the railroad boom—not the ones laying the tracks.

Why?

Because the track layers spent billions on railroad infrastructure with razor-thin margins… while the businesses riding the rails slashed costs, scaled faster, and improved their profits.

The modern equivalent is big tech building the digital railway tracks upon which somebody else’s trains will run.

We want to own the companies building shiny new trains to take advantage of the AI age, not those building the railways.

We’ve zeroed in on one of these AI companies in our brand-new Q4 Disruption Playbook, available for Disruption Investor members.

Stephen McBrideChief Analyst, RiskHedge

PS: Want to stay on top of today’s most disruptive trends… and the companies building the future? Join me in The Jolt. It’s where I share new ideas, insights, and what I’m watching in the markets. Sign up here to join us today—it’s free.