Global investment firm GQG Partners has issued a stark warning that the current technology market is exhibiting “dotcom-era overvaluation,” with a combination of soaring capital spending and weakening fundamentals that could lead to repercussions more pronounced than the 1999 crash.

Current Conditions More Fragile Than Dotcom Bubble?

In a new research report titled “Dotcom on Steroids,” the firm argues that the AI-driven boom has pushed the tech sector to a dangerous inflection point, masking underlying risks for investors.

The report’s central thesis is that today’s market conditions are potentially worse than the dot-com bubble because of a “trifecta of rich valuations, increasing macro risk, and—perhaps most importantly—deteriorating company fundamentals.”

GQG argues that, unlike the past decade, the tech sector no longer represents forward-looking quality due to decelerating revenue growth and increasing competition.

“Today’s market, particularly in the tech sector, exhibits dotcom-era overvaluation, with lofty multiples, slower earnings growth, and a weaker macroeconomic backdrop, in our view,” the firm stated.

Tech valuations appear to echo the dotcom era—soaring multiples, slowing growth, and intensifying competition, in our view. Could the repercussions be even more pronounced than the 1999 dotcom crash?Read our research: https://t.co/ew3VBsiQO3 pic.twitter.com/YFJWR8mbhD

— GQG Partners (@GQGPartners) September 15, 2025

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