Are the high-flyers worth the hype? You're listening to Motley Full Money. I'm Mary Long joined today by Tim Byers live from Denver Tim how you doing this morning

fully caffeinated ready to go Mary there we go love to hear it another thing that is

fully caffeinated is the S&P 500 this year it's up 17% and there's a lot of text talks that are responsible for that

run up.

NVIDIA shares this is not a new story. They've more than doubled.

Market values now over $3 trillion.

Amazon hit a $2 trillion valuation in recent days.

The narrative behind a lot of this is AI, AI, AI. Companies in S&P 500 are trading at around 22 times projected earnings

over the next 12 months, compared with the five-year average of just under 20.

What do you make of all this? Are we in an AI bubble?

What would you call it?

Well, I would say two things can be true. I think we can be in an AI bubble and I think

the S&P can be expensive in some spots and then not at all

expensive in other spots like I don't think small caps for example are in any way overpriced. In fact I think small caps generally are

underappreciated and overlooked and that is that's an interesting place to be shopping if if you are an

investor right now I mean what because the S&P 500 is a cap weighted index

meaning that what is it something like a quarter of the value of the

S&P 500 is in the magnificent, the so-called Magnificent Seven stocks, that's outrageous. So if you are looking at the multiple, are you

adjusting that multiple for the Magnificent 7? Are you stripping them out of

that calculation or are you leaving them in?

Is it, are you trying to get an apples to apples all S&P versus all S&P?

I think the answer is we want an apples to apples comparison but just the sheer weight of those stocks

...