Look for some big technology stocks to pop despite losing ground on Tuesday, CNBC “Fast Money” traders said.
The tech-heavy Nasdaq (NASDAQ: .IXIC) shed about 28 points a day after closing above the psychologically important 5,000 level for the first time in 15 years. “Fast Money” traders saw buying opportunities after the sector’s sluggish day.
Read More Nasdaq 5K only important in symbolism: Boockvar
Facebook (NASDAQ: FB) traded barely negative on Tuesday, lingering around $ 80 per share. The social media behemoth looks promising because of a reasonable valuation and its more than 1 billion users.
“We don’t know what they can do, but we know they’ve got the largest scale of anyone in the space,” he said.
Traders looked at names that have encountered problems in China. Chipmaker Qualcomm last month agreed to pay a nearly $ 1 billion antitrust settlement in the country.
“China is priced in” where Qualcomm (NASDAQ: QCOM) closed Tuesday, nearly 2 percent lower, at around $ 71 per share, Seymour said.
“This is a great time to pick up Qualcomm,” he said.
China recently booted Cisco Systems (NASDAQ: CSCO) from its approved state purchase list. Despite the move, Cisco “is still a buy” at just below $ 30 per share, trader Steve Grasso said.
Read More China boots Apple, others off state purchase list
Seymour believes the stock will lose more ground, not due to China but because it reached “key” technical levels.
Grasso also touted Micron Technology (NASDAQ: MU)‘s prospects. Nomura downgraded the semiconductor maker to “neutral” from “buy” on Tuesday, driving it 5 percent lower.
“I think you could have some serious upside here,” Grasso said.
Tim Seymour is long AAPL, T, BAC, C, DIS, F, GE, GM, GOOGL, INTC, FXI and SUNE. Tim’s firm is long BABA, BIDU, MCD, NKE, NOK and SBUX.
Steve Grasso is long AAPL, BA, CLVS, EVGN, FB, GDX, GOOGL, IMMR, KBH, KDUS, MHY, MJNA, NVIV, PFE, POT, SO, T, TMUS and TWTR. He sold YHOO. His firm is long FCX, NE, NEM, OXY, RIG, VALE, IBM, USO and AMZN. His kids are long EFG, EFA, EWJ, IJR and SPY.
Brian Kelly is long BTC=, U.S. dollar, GLD, CTRL calls, HYG puts, BBRY, BBRY call spreads and TLT. He is short EWA, EWG, EWQ, EWZ, EWW, JJC, Australian dollar, British pound, Canadian dollar, euro, yen and yuan.
Guy Adami is long CELG, EXAS and INTC. Guy Adami’s wife, Linda Snow, works at Merck.
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