Jim Cramer Sees AI Spending 'Revulsion' Clash With 'Desperate' Demand As Top Analyst Warns AI Investments Mirror Dotcom Bubble On 'Steroids' - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)

Group 1 - The AI sector is experiencing conflicting forces, with both caution regarding spending and a strong demand driving capital expenditures [1][2] - GQG Partners warns that the current tech sector exhibits "dotcom-era overvaluation," suggesting that the consequences of the current boom could be more severe than the dot-com collapse of the late 1990s [3][4] - GQG's analysis indicates that big tech's capital expenditure (CapEx) as a percentage of EBITDA is now between 50% and 70%, comparable to levels seen during the telecom and energy bubbles [4][5] Group 2 - The report highlights deteriorating fundamentals in the tech landscape, including decelerating revenue growth and collapsing free cash flow, contradicting the belief that today's tech giants are superior to those of the dot-com era [5][6] - Currently, 35% of the S&P 500's weight is driven by companies trading at over 10 times sales, exceeding the 25% level observed at the dot-com peak [6] - GQG believes there are better investment opportunities outside the tech sector, urging caution for those heavily investing in the AI boom [7] Group 3 - A list of notable big tech firms and their year-to-date (YTD) and one-year performance is provided, with Nvidia Corporation showing a YTD performance of 29.01% and a one-year performance of 47.62% [9][10] - The SPDR S&P 500 ETF Trust and Invesco QQQ Trust ETF saw premarket increases, with SPY up 0.19% and QQQ up 0.29% [10]