This dot-com survivor says AI buildout is more like 1997 than 1999 — and still urges investors to have more cash

Fund manager Dan Niles likens the current AI-driven chip-stock rally to the internet infrastructure run-up of 1997 rather than 1999, saying the rise of agentic AI (driven by tools like OpenClaw) has increased demand for CPUs. While he sees long-term upside in some chip names (saying Intel is still undervalued), Niles warns that many stocks that have already rallied could drop 30%–50% by early 2027 and urges investors to hold substantial cash. He points to market divergences — S&P 500 at a fresh record high, oil up ~60% YTD and elevated bond yields — as reasons for caution. Near-term market action showed S&P futures modestly lower.