Experts are sounding the alarm bell about a potential AI bubble burst sooner or later. But many believe major AI stocks still have a lot of room to run before seeing a correction. Billionaire hedge fund manager Paul Tudor Jones said in a latest interview with CNBC that while “ingredients” are in place for a potential market top, there’s going to a massive surge in stock prices before we see a “really, really bad end to it.”
“It’s 1999. Party like it’s 1999, right? Feels exactly like 1999. I don’t know whether we’ll actually replay it exactly, but I think all the ingredients are in place and certainly from a trading standpoint, you have to position yourself like it’s October 99. I don’t see why you would do anything but that,” Tudor Jones said.
The founder of Tudor Investment said investors could participate in the bull market because “the greatest” price appreciation is always in the last 12 months before the peak. The billionaire warned investors playing this bull market that they should be ready to exit before the real crash begins:
“If you don’t play it, you’re missing out on the juice. If you do play it, you have to have really happy feet because there will be a really really bad end to it. And my guess is that I think all the ingredients are in place for some kind of a blowoff. Will it happen? Again, history rhymes a lot. So I would think some version of it is going to happen again. If anything now is so much more potentially explosive than 1999.”
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10. CoreWeave Inc (NASDAQ:CRWV)
Number of Hedge Fund Investors: 29
Amit Daryanani, senior managing director at Evercore ISI, said in a latest program on CNBC that CoreWeave Inc (NASDAQ:CRWV) is positioned to benefit from the rising AI infrastructure demand. He recently started covering the stock with a $175 price target.
“You have Microsoft and Meta over here and hopefully other customers as well. I do think fundamentally what’s happening with them right now is demand for AI infrastructure is far in excess of what supply is. Coreweave is positioned to benefit really well from having one of the largest independent GPU clusters — 250,000 plus GPUs — that a lot of customers beyond just Microsoft and Meta could use. I would argue customers like Google and others could look at this as well to meet incremental demand, because that’s really what the shortage is right now: there’s not enough supply to go around for all these companies.”
9. VanEck Gold Miners ETF (NYSEARCA:GDX)
Number of Hedge Fund Investors: 46
Tim Seymour, the founder and Chief Investment Officer of Seymour Asset Management, recently issued a bullish call on GDX. Here is what the analyst said about the ETF:
“Gold miners, VanEck Gold Miners ETF (NYSEARCA:GDX). I mean, there was a time gold was defensive. There was Karen, how many a lot of reasons to buy gold, right? They’re anything you want. Anything you want. Well, the reason now is because I think it is offense for gold miners. Free cash yields are awesome. Stay there.”
8. Pfizer Inc (NYSE:PFE)
Number of Hedge Fund Investors: 83
Evan Seigerman, head of healthcare research at BMO Capital Markets, explained in a latest program on CNBC why he’s bullish on Pfizer.
“You know, we saw that upside from the dividend. And now with the Metsera acquisition, I think they could be a credible player in obesity. The data was good, highlighting that their due diligence process was done well. And then in terms of the fact that they are in good graces with the administration, whether you know it comes to tariffs, concerns around drug pricing, I could see further multiple expansion. Of course, they do have some issues with their loss of exclusivity products, but many of the pharma names that I cover do. And I think that as long as they stay the course in terms of margin expansion and developing their pipeline, they’re in good shape.”
Pfizer Inc (NYSE:PFE) recently announced to buy Metsera, Inc. (NASDAQ: MTSR), a clinical-stage biopharmaceutical company working on treatment for obesity and cardiometabolic diseases.
Parnassus Investments, an investment management firm that focuses on owning a concentrated portfolio of U.S. large cap stocks, released its Parnassus Value Equity Fund second-quarter 2025 investor letter. Here is what they have to say about Pfizer Inc. (NYSE:PFE) in their investor letter:
“We exited our position in Pfizer Inc. (NYSE:PFE) due to reduced conviction in its turnaround thesis. This was driven by a weaker research and development pipeline following recent trial setbacks, including an oral GLP-1 drug, as well as increased likelihood of large merger and acquisition activities that could raise leverage amid growing regulatory and tariff headwinds.”
7. Nike Inc (NYSE:NKE)
Number of Hedge Fund Investors: 81
Matt Boss, JPMorgan retail analyst, recently explained in a program on CNBC why he believes Nike Inc (NYSE:NKE) shares have more upside. The analyst increased his price target for the sportswear giant to $100 from $93. He had upgraded the stock to a Buy when the stock was lower
“So, there’s a company dynamic and then there’s a stock dynamic. At the company level, at the more micro level, the most interesting thing right now that’s changing is that in September, from a micro merchandising perspective, they’ve put a new team on the field at every one of their partners assessing opportunities, inventory, and new product development. That’s what they had really walked away from in the last couple of years. It seems like it would be table stakes, but that was when they were operating more for profitability, moving more online, and if anything, they alienated a lot of shelf space. That’s what I think they’re coming back to take. At the stock level, the call is pretty simple. Twelve to thirteen percent margins is $4 plus in earnings power. If you believe Nike can sustainably grow revenues going forward, this stock’s actually trading nine turns below where it was before this all started.”
Sands Capital Global Growth Strategy stated the following regarding NIKE, Inc. (NYSE:NKE) in its second quarter 2025 investor letter:
“The top individual absolute detractors were On Holding, Atlassian, NIKE, Inc. (NYSE:NKE), Builders FirstSource, and Carlisle Companies. Nike is the largest athletic footwear and apparel company in the world by revenue. We sold the business in the second quarter.
We exited Nike to fund the position in On Holding. In our view, On represents a faster-growing, earlier-stage version of Nike, which we believe is now a maturing business facing several operational and cultural challenges. We misjudged the extent of Nike’s market saturation and the implications for potential growth. We also gave the company too much time to recover from self-inflicted missteps—most notably its COVID-era shift toward direct sales, which came at the expense of wholesale partnerships, product innovation, and critical technology infrastructure.”
6. Merck & Co Inc (NYSE:MRK)
Number of Hedge Fund Investors: 92
Carter Worth from Worth Charting said in a latest program on CNBC that Merck & Co Inc (NYSE:MRK) is one of the stocks that has more upside potential based on his analysis. Here is what the analyst said:
“The first is Merck & Co Inc (NYSE:MRK). This is the definition of a bearish to bullish reversal buy. 150 day is flattening. That’s how something bases and bottoms. Merck & Co Inc (NYSE:MRK) is up about 5% over the past 30 days.”
Asked how much more the stock can run, Worth said:
“This kind of bullish price volume correlation with very heavy volume is hard to stop day to day, week over week. So I would think at least 10 to 15% higher in these names and thematically for left for dead healthcare names.”
Impax US Sustainable Economy Fund stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its second quarter 2025 investor letter:
“Merck & Co., Inc. (NYSE:MRK) (Health Care, Pharmaceuticals) has a high Corporate Resilience score, and is contributing to a more robust and sustainable health care system through its leading drug and vaccine discovery. The stock’s weakness in Q2 was driven by a combination of concerns about its drug pipeline, particularly the competition from generic versions of Keytruda, and weaker market sentiment around Health Care stocks.”
5. Netflix Inc (NASDAQ:NFLX)
Number of Hedge Fund Investors: 133
Guy Adami from CNBC Fast Money said in a latest program that Netflix Inc (NASDAQ:NFLX) stock has not “traded well” since its earnings, but the impact of Elon Musk’s backlash against the company should not cause investors to sell it.
Musk recently urged his followers to cancel their Netflix Inc (NASDAQ:NFLX) subscription over a controversy about an animated Netflix Inc (NASDAQ:NFLX) show featuring a transgender character, according to media reports.
Adami questioned whether subscription cancellations following Musk’s post would “move the needle” for Netflix Inc (NASDAQ:NFLX) and said many people would also sign up for the streaming service to “counter” the potential cancellations.
“I think 10% is sort of a big estimate, I guess. Yeah, let’s just play stock market here. Yes, you’re right. I think the math is right. It’s probably a little bit less than that, but is that going to move the needle necessarily? And you’re going to see people sign up on the back of that to counter it. So, I think there’s some mitigation. Again, Netflix Inc (NASDAQ:NFLX) has not traded well since earnings. I think we all can agree on that and maybe for the first time valuation is a concern. I will tell you Tom Rogers came on the show right around that earnings period and actually for the first time in years was somewhat cautious on Netflix Inc (NASDAQ:NFLX) which gave us all pause, but I don’t think this is a reason to sell the stock.”
Macquarie Core Equity Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its second quarter 2025 investor letter:
“Netflix, Inc. (NASDAQ:NFLX) offers a subscription-based streaming service. We expect the company’s growth momentum will continue while investments in content and licensing grow at a slower rate, allowing for higher margins over the coming two to three years.”
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