'Pretty comfortable' with where large tech firms are trading currently: Gabelli Funds' John Belton

Summary

John Belton, portfolio manager for growth equities at Gabelli Funds, joins Squawk Box to discuss the sharp selloff in tech and software and the debate over whether AI is a bubble or a disruptive force. He argues AI is already generating revenue in digital advertising, digital commerce, cloud computing, and agentic software, while many legacy software companies face real disruption and valuation risk. He says large tech platforms are trading at reasonable valuations, is comfortable with them, and sees Amazon's valuation discount to Walmart as extending its upside case.

• Tech and software sold off sharply, with AI disruption fears pressuring the group.
• Belton rejects the idea that AI can be both a bubble and an industry-eating force.
• He identifies digital advertising, digital commerce, cloud computing, and agentic software as areas where AI is already generating returns.
• He says many software companies were overvalued and face AI disruption risk.
• He is comfortable with large tech platform valuations because they benefit from AI with less obvious disruption risk.
• Amazon's valuation discount to Walmart extends its upside case if fundamentals recover.
• He expects any rebound to be case-by-case and favors quality AI beneficiaries after indiscriminate selling.