Gartner Hype Cycle: Overview, Phases, How It's Used

What Is the Gartner Hype Cycle?

By Kristi Waterworth – Updated Jan 14, 2026 at 8:28 PM EST | Fact-checked by Frank Bass

Key Points

The Gartner Hype Cycle outlines five phases of tech development, guiding investment risk and timing.
Investors should diversify early tech investments and monitor advancements closely.
For lower risk, invest in mature tech at the plateau of productivity stage with clear leaders.

New technology can drive the market in surprising ways. Although they may come out of nowhere, there's a documented phenomenon that can explain the rise and fall of these kinds of stocks. The Gartner Hype Cycle is a model that more or less shows how emerging tech works within the framework of investing. Let's take a look at what this is and what it means for you.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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