The Second AI Boom: How to Prepare for a Trillion-Dollar Swell

Editor’s note: “The Second AI Boom: How to Prepare for a Trillion-Dollar Swell” was previously published with the title “AI’s Second Boom: How the Next 24 Months Could Transform Your Portfolio” in April 2025. It has since been updated to include the most relevant information available.

Back in late 1994, tech company Netscape launched its web browser to the world. And no one knew it at the time, but that moment sparked what would become the most explosive investment boom in modern history…

Over the following four years, from late ‘94 to ‘99, the Dot-Com Boom gave early investors the chance to become millionaires… even billionaires. Just look to Stripes founder Ken Fox. Alongside Walter Buckley and Pete Musser, Fox became a ‘paper billionaire’ by investing in B2B e-commerce companies during this profitable era. 

Though, massive paydays weren’t just reserved for early investors. It turns out that it didn’t matter if you were in the market on Day One.

In fact, the biggest gains actually came during the Dot-Com Boom’s second half.

How Today’s AI Boom Mirrors the Dot-Com Era – And What It Means for Investors

See: Cisco (CSCO), the poster child of this boom. 

As the world rushed to build out our modern internet infrastructure, the networking solutions provider saw demand for its equipment soar. The stock became a massive winner. 

From early 1995 to summer 1997 – early in the Dot-Com Boom – CSCO rallied about 200%

But did you know that the majority of the company’s gains came in the ‘second half’ of that boom?

Between summer 1997 and late ‘99, CSCO went parabolic, soaring an absurd 800%. 

In other words, in the first two years of the dot-com era, Cisco stock tripled. Then, in its last few years, CSCO rose about 9X. 

It’s the same story with Viavi Solutions (VIAV), another networking solutions provider for the internet buildout.

In the Dot-Com Boom’s first half, from early 1995 to summer ‘97, that stock rallied an astounding ~500%. 

But from mid-97 to late ‘99, it absolutely skyrocketed – nearly 3,000%. 

Qualcomm (QCOM) followed a similar pattern. 

That stock doubled in the first half of this boom, between early 1995 to summer ‘97. Then, it soared more than 2,800% from summer 1997 to late ‘99. 

Lather, rinse, repeat for other massive internet stock winners of the 1990s like Semtech (SMTC), Applied Materials (AMAT), Oracle (ORCL), Paychex (PAYX), Sanmina (SANM), etc. 

All were huge winners in the Dot-Com Boom. And all produced their biggest returns later on in the game. 

Why? 

Not because of Netscape’s browser debut, but because of what came after…