Picture the late 1990s: A young entrepreneur named Mark Cuban sells his start-up at the peak of the dot-com mania and walks away a billionaire. He made his fortune in what was undeniably a bubble – a “stupid” market where prices made no sense. Fast forward to today, and we’re in a similarly crazy market frenzy fueled by artificial intelligence (AI).
The lesson?
Markets can remain stupid long enough to make fortunes.
In other words, bubbles aren’t just harbingers of doom – they’re also where bold investors can strike it rich (if they play it right).
Watch our latest Being Exponential With Luke Lango to learn more:
Why the Bubble Brewing Is Not All Bad
By many accounts, an AI bubble is forming. Tech visionaries from Sam Altman to Jeff Bezos have hinted at an “industrial revolution” vibe – explosive growth with frothy valuations.
We see sketchy signs: startups cutting circular deals (like OpenAI swapping equity for chips with Advanced Micro Devices (AMD) and Nvidia (NVDA)), and companies burning cash for breakneck expansion. Even Oracle’s (ORCL) latest results showed razor-thin margins (around 16% vs. the usual 70% in cloud computing) on its AI cloud services – a crack in the facade of AI profitability. And yet, no one is running for the hills.
History reminds us that bubbles can inflate far longer than skeptics expect. Between late 1999 and early 2000, the Nasdaq doubled in a final blow-off top.
Today feels similar.
One famed investor said this market feels like October ’99 – poised for a “melt-up” rally.
Our take is that we might only be in late ’98, with 12-plus months of runway left. Fortunes are made in these melt-ups. The key is to ride the wave and know there’s a cliff somewhere ahead.
Riding the President’s Portfolio – Front-Run Uncle Sam
One big tailwind propping up this “stupid” market: Uncle Sam is literally picking winners. The U.S. government has started assembling what we dub the “President’s Portfolio”: taking equity stakes in companies deemed critical to national security (from chips to minerals). Every time the White House blesses a stock, its share price goes ballistic.
Recent examples include:
- MP Materials (MP) – Rare-earth miner; jumped over 200% in two months after a Defense Dept. investment.
- Intel (INTC) – U.S. chip giant; climbed ~90% in two months after the feds took a 10% stake.
- Lithium Americas (LAC) – Lithium producer; doubled in mere weeks once Washington put in funding.
- Trilogy Metals (TMQ) – Alaskan critical metals firm; soared 200%+ in a day on news of a White House stake.
- Critical Metals Corp. (CRML) – Rare earths in Greenland; spiked 60% on rumors of a U.S. deal (later partially walked back).
These are some of the fastest gains we’ve ever seen. And it’s likely not over.
The “President’s Portfolio” is adding holdings at a pace of roughly one per month, aiming for a well-rounded supply chain arsenal – from miners to battery makers to chip fabricators.
For retail investors, one strategy is to follow the money: identify which critical sector or company Washington might target next, and get in before the news hits.
In a market hungry for any AI-adjacent plays, a government seal of approval can be a ticket to instant hypergrowth.
Betting on the New AI King – OpenAI and Tokenized Access
Meanwhile, the hottest name in AI – OpenAI – has become the world’s most valuable startup virtually overnight, recently reaching a stunning $500 billion valuation. That’s bigger than SpaceX and on par with some Dow 30 companies – and achieved in just a few years.
But regular investors were completely shut out. OpenAI’s meteoric rise from $0 to $500B had zero retail participation, since it’s privately held by VCs and tech giants. It’s a textbook case of the rich getting richer, and it highlights a massive opportunity gap.
Now, innovators are looking to bridge that gap. Firms like Robinhood (HOOD) are exploring tokenization – essentially turning private shares into crypto tokens that anyone can buy in fractional amounts.
If OpenAI were tokenized, everyday folks could finally own a slice of the action. This is why we’re excited about the infrastructure enabling such democratization. For example, Solana (SOL/USD) is a lightning-fast blockchain platform well-suited for asset tokenization. Fintech disruptors like Coinbase (COIN), SoFi (SOFI), and of course Robinhood are all working on ways to tokenize equity or offer access to private deals.
It won’t happen overnight, but the momentum is building. In fact, Wall Street and Washington are increasingly backing tokenization as the next big evolution in investing (a potential $16 trillion opportunity, by some estimates).
For those eager to bet on OpenAI’s success right now, one clever workaround is via SuRo Capital (SSSS). SuRo is a publicly traded venture fund – and one of its holdings is a stake in OpenAI.
In effect, SSSS gives retail investors indirect exposure to Sam Altman’s AI juggernaut. (Another example is Destiny Tech100 (DXYZ), a closed-end fund with SpaceX exposure, though we view OpenAI’s prospects as more exciting than SpaceX at the moment.) In short, if Sam Altman – whom some have called the new king of tech – keeps delivering, funds like SSSS could ride those coattails higher.
Side note: Sam Altman’s leadership is legendary. One mentor joked, “If you parachuted Sam onto an island of cannibals, in five years he’d be their king.” That indomitable drive has led OpenAI to sign massive deals (Nvidia reportedly plans to invest up to $100 billion in the company). Some might call it reckless growth, but there’s speculation that Altman’s aggressive moves come with an implicit safety net – he’s gotten quite cozy with the powers in Washington. If push comes to shove, many believe the government wouldn’t let OpenAI fail. For investors, that “too important to fail” aura only adds to the euphoric narrative propelling AI stocks.
Hypergrowth Hotspots: From Flying Taxis to Quantum Computers
Beyond AI software and mining stocks, a whole ecosystem of next-generation technologies is heating up – and catching bids from investors who want in on the “next big thing.” Here are a few sectors and stocks making waves:
- Flying EVs (eVTOL Aircraft): Electric air taxi prototypes are taking flight. Just this month, Joby Aviation (JOBY) completed successful test flights at a California air show, impressing onlookers with its vertical takeoff craft. Joby aims to launch commercial air taxi service by 2026. Its rival Archer Aviation (ACHR) is not far behind, and both stocks have been climbing back toward their highs. This isn’t sci-fi anymore – it’s a burgeoning industry that could redefine urban transport, and the market is starting to price that in.
- Quantum Computing: After years of R&D, quantum tech is entering a commercial era. Stocks like IonQ (IONQ) and Rigetti Computing (RGTI) have blasted to new 52-week highs lately. These companies are proving useful quantum systems can be built, and enterprises are beginning to explore their use.
- AI Infrastructure “Arms Dealers”: The big AI boom isn’t just enriching household names like Nvidia. Lesser-known players are riding the wave by providing the picks and shovels for AI’s gold rush. Two examples we love are CoreWeave and Nebula (often dubbed the “Ferrari and Lamborghini” of the new cloud).
- Crypto & Stablecoins: It’s not just speculative meme coins bouncing back – the crypto space is evolving with real financial infrastructure. Stablecoins, digital tokens pegged to fiat currencies, are surging in adoption and could redefine global finance. New U.S. legislation on stablecoins is in the works, and if passed, it could unleash a $4 trillion flood into this “crypto dollar” economy. Keep an eye on this space, especially as Washington’s stance evolves.
The Bottom Line
Retail investors today are not just passive observers; they’re key players in this exponential era. Whether it’s by front-running the White House’s next investment, snagging a proxy stake in the hottest AI startup, or leveraging new platforms to amplify their edge, opportunity abounds.
Yes, the market may be acting “stupid” – pricing some stocks well beyond fundamentals. But as we’ve learned, stupid markets can stay irrational longer than skeptics stay solvent. Rather than fight the trend, savvy investors will ride it – with a plan for when gravity kicks in.
In practical terms: Focus on the mega-trends with real momentum (AI, quantum, electrification, blockchain).
Take advantage of democratizing forces (like tokenization) that open doors previously closed to Main Street.
And above all, maintain agility. When this bubble eventually cools or bursts, those who prepared will keep their fortunes, while latecomers chasing quick bucks might be left holding the bag. For now, though, the bubble is your friend. Ride it wisely, and it just might make you rich.
