The technology-company stock-market bubble of the 1990s was the dot-com bubble.
The bubble grew as investors poured money into internet businesses, many of which had little revenue or no profits. The commercial expansion of the World Wide Web encouraged the belief that rapid user growth would eventually justify almost any valuation. Venture capital, initial public offerings, and speculative trading helped push technology shares higher.
The Nasdaq Composite reached its peak on March 10, 2000. After that, investors increasingly questioned the ability of internet companies to earn sustainable profits. Many firms failed, merged, or sharply reduced their operations, and technology shares lost a large portion of their value.
The collapse was not simply caused by the existence of internet businesses. Some companies created during the period became highly successful, but the market had priced many young firms as if future growth were guaranteed. The event therefore illustrates the difference between a transformative technology and realistic investment valuation.
The dot-com crash also affected the broader economy, although it was less destructive to the banking system than the 2008 financial crisis. The Nasdaq eventually took many years to recover its 2000 peak.