Wedbush Securities analyst Scott Devitt joins Catalysts to discuss how Big Tech can live up to expectations behind AI market drivers and continue to bring in gains for the remainder of the year.

When asked if valuations were overhyped, Devitt responds: "They're high relative to history, [but] they're not very high. Meta (META) is a mid-20 times forward GAAP earnings multiple company. And Alphabet's (GOOG, GOOGL) slightly lower than that. Amazon's (AMZN) 33 times, and I love Costco (COST), but Costco trades at something like 45 times... It's always easy to sell winners, after good periods of performance, and we've definitely, probably overanalyzed this in terms of making sure that we're comfortable sticking around."

He continues to state that fundamentals are strong, and that AI's proof of revenue won't entirely "be necessary for still a little bit of time."

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino