Investor Dan Niles expects there’s a good “melt up rally” traders can profit from before the true synthetic intelligence winners emerge, as extra observers on Wall Street examine the present market to the dot-com bubble in 2000. “They’re all trying to spend a lot on this AI. It’s going to coalesce down to a few sets of players, and the rest are going to get absolutely wrecked,” the founding father of Niles Investment Management advised CNBC’s “Squawk on the Street.” “But it doesn’t mean you can’t have a really nice melt up rally that you can benefit from,” Niles continued. .IXIC 5Y mountain Nasdaq Composite, over 5 years The investor makes his feedback as concern grows on Wall Street that the present market is beginning to seem very similar to it did in 1999 and 2000, when the market had run up round enthusiasm for web corporations before the bursting of the dot-com bubble worn out billions of {dollars} in wealth. Most not too long ago, OpenAI CEO Sam Altman stated he thinks the AI market is in a bubble , in line with a report from The Verge printed Friday. Still, Niles expects traders can web some beneficial properties before any crash. He famous that the Nasdaq Composite surged 86% in 1999, before struggling a “punishing” two-and-a-half-year decline. The tech-heavy index tumbled roughly 39% in 2000, 21% in 2001 and 32% in 2002. The investor expects that is the second for traders to choose their positions in corporations which are extra prone to make a return on AI funding, noting Microsoft and Oracle as two examples he thinks are seemingly to take action. He stated he has shorts on different corporations he expects will get harm in a downturn. “You’re seeing valuations, obviously, for some companies out there that just make absolutely no sense over the long term,” Niles stated.