Picture it: the year is 1999.
The dot-com boom is in full swing. Everyone’s talking about the internet. IPOs are doubling overnight, and “tech” has become the hottest word on Wall Street.
With the internet going mainstream, money is pouring into technology stocks and optimism is sky-high.
Back then, companies like Cisco Systems, Inc. (CSCO), Microsoft Corporation (MSFT) and Amazon.com, Inc. (AMZN) were leading the charge, fueling one of the greatest bull markets in history. And for investors who recognized what was happening early, the rewards were extraordinary.
I remember it clearly. 1999 was my best-performing year ever. Several of my portfolios surged more than 100%, and stocks were taking off left and right. It was the kind of year every investor dreams of, when the market practically throws money at the right opportunities.
For those who saw the potential early, fortunes were made almost overnight.
Fast-forward to today, and I’m seeing the same setup again. Only this time, it’s not the internet driving the boom – it’s artificial intelligence.
Everywhere you look, AI is transforming how businesses operate and drive economic growth. That’s why I believe 2026 will look a lot like 1999 – a year when several of my portfolios surged triple digits.
Now, I know what you may be thinking.
We all know what came after 1999. The dot-com bubble burst and many high-flying stocks crashed.
But in today’s Market 360, I want to discuss why I think this time will be different.
See, unlike with the dot-com bubble, this boom is being driven by real, tangible results.
Are valuations frothy? Sure, there’s no denying that. But many of the stocks involved in the AI Revolution are backed by stunning fundamentals, with triple-digit revenue and earnings growth.
Palantir Technologies, Inc. (PLTR), for example, reported incredible earnings this week, and in today’s Market 360, we’ll take a closer look at what they reveal about the next phase of the AI Revolution.
Digging into Palantir’s Numbers
In J.R.R. Tolkien’s “The Lord of the Rings” books, a palantír is a magical, indestructible crystal ball that allows users to communicate and see events happening far away.
It’s not surprising, then, for those unfamiliar with it, to learn that Palantir Technologies is an AI company.
Its platforms help governments, defense agencies and major corporations organize massive amounts of data and use AI to find insights to make better decisions. In short, Palantir gives institutions an AI-powered brain to process information faster and more accurately than humans ever could.
That’s why it’s becoming a critical player in national security, corporate automation and the broader AI boom.
On Monday, Palantir reported a blowout quarter. The company closed 204 deals worth at least $1 million in the quarter, as well as 91 deals worth at least $5 million and 53 deals worth at least $10 million. In total, it booked a record $2.76 billion in contract value – up a staggering 151% year-over-year.
Total third-quarter revenue increased 63% year-over-year to $1.18 billion, and adjusted earnings surged 110% year-over-year to $528.71 million, or $0.21 per share.
The company also raised its full-year guidance across the board, now expecting revenue of about $4.4 billion, and adjusted earnings of about $2.155 billion – both well above Wall Street forecasts.
In other words, Palantir didn’t just meet expectations – it crushed them.
And yet, the stock has dropped about 14% after earnings.
Why? Well, some investors took profits, while others worried that Palantir’s share price – up more than 170% year-to-date – had run too far, too fast.
What’s more, news broke that famed short-seller Michael Burry had disclosed that his hedge fund owned put options against both NVIDIA Corporation (NVDA) and Palantir.
A “put” is a contract that rises in value if a stock falls, so disclosures from well-known investors like this can spook traders even when fundamentals are fine.
But the thing is, folks, Burry isn’t an AI expert. He’s just someone who looks at what’s running and tries to prick the bubble. Personally, I think Burry is going to get buried on his put option bet. And I look forward to squeezing him thoroughly.
Just because he made a legendary call on housing in 2008 doesn’t mean he knows AI. This is an entirely different ballgame, one that is all about numbers.
And numbers don’t lie.
According to my Stock Grader system (subscription required), Palantir holds a coveted AA-rating, with both its Quantitative and Fundamental Grades earning “As.” That kind of strength separates the true AI leaders from the rest of the pack.
So, yes, Palantir – and other AI stocks – may carry frothy valuations. But the fundamentals are there, folks.
The reality is that earnings power is what drives this market in the long run. And that’s why I think that as long as companies like Palantir and NVIDIA continue to deliver the goods where it counts, they’ll be just fine.
Why This Time Is Different
Now, I know what you may be thinking – what if I’m wrong? That’s a fair question. I’ve been doing this long enough to know that no forecast is guaranteed, and there’s always risk in any bull market.
But when I compare the fundamentals of this AI boom to the dot-com era, I’m convinced this time truly is different.
In 1999, the internet was exciting but unproven. Most of the “dot-com darlings” had no earnings, no profits and no path to sustainable growth. Investors were chasing hype, not performance.
Today’s setup is the opposite. The companies leading the AI Revolution – NVIDIA, Microsoft, Amazon, Palantir – are not only profitable, but they’re also growing earnings and revenue at triple-digit rates in some cases. They have cash-rich balance sheets and real products that are already reshaping the global economy.
In 1999, the internet was running ahead of the economy. Today, AI is driving it. The technology is improving productivity, efficiency and margins across nearly every industry – from logistics and finance to defense and healthcare.
If I’m right, we’re about to see another explosion of opportunity. And if I’m wrong, the companies leading this movement are still among the most profitable enterprises in the world – not the speculative startups of two decades ago. Either way, investors who position themselves wisely today are far better off than those sitting on the sidelines.
In fact, rather than worrying about an AI bubble, there’s something else entirely that investors need to be preparing for… It’s the bigger story driving all of this – and it’s unfolding right now.
I call it the Economic Singularity.
This is the moment when artificial intelligence becomes the dominant force behind growth, productivity and wealth creation.
It’s a shift as profound as the Industrial Revolution, but far faster and more concentrated. And investors who recognize it early could multiply their wealth as new leaders emerge.
The same technology that’s eliminating jobs is also creating enormous opportunities for investors who know where to look. The companies harnessing AI’s power – the builders, the enablers, the data and infrastructure leaders – are positioned to capture the lion’s share of this new wealth.
That’s why, in a special briefing, I pull back the curtain on this transformation and even reveal the companies I believe will lead America into the next era of prosperity. You’ll also discover which parts of the market are most vulnerable to disruption – and where the biggest new profit opportunities are forming right now.
Go here to check it out now and get ahead of the biggest wealth transfer of our lifetime.
Sincerely,
Louis Navellier
Editor, Market 360
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Cisco Systems, Inc. (CSCO), NVIDIA Corporation (NVDA) and Palantir Technologies, Inc. (PLTR)
P.S. Next week, I’ll be joining my colleagues Jonathan Rose, Eric Fry, and Luke Lango for a special broadcast called The Profit Surge Event.
We’ll show how traders are using Jonathan’s real-time “smart money” system to amplify our top stock ideas – sometimes by 10X or more
It’s free to attend on Monday, November 10 at 1 p.m. Eastern. Reserve your seat here.
