Current Market Conditions Create A 'Golden Opportunity' For Tech Stocks: Here's Why

The majority of stocks in the broader technology sector faced selling pressure Thursday after the Federal Reserve announced it would stop buying bonds about three months earlier than initially planned.

Although some investors are booking profits, others are looking for opportunities amid the decline.

"This is not the time to throw in the white towel on tech," Wedbush Securities analyst Dan Ives said Friday on CNBC's "Squawk Box."

Why It's Important: Some companies are growing two to three times over normalized levels, Ives said, adding that elevated growth will drive some stocks higher. Ives pointed to Apple Inc AAPL and Microsoft Corp MSFT, as well as names in the semiconductor and cybersecurity sectors.

"The basket approach worked over the last 18 months. Now it's going to be a stock pickers market in tech, but it's not the time where the tech trade is over," Ives said. "I still think we are in the middle innings of a rerating."

In a rising rates environment, the fundamental story remains the same, he noted.

The Fed said this week it will leave interest rates unchanged. The announcement paves the way for three interest rate hikes by the end of 2022.

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Ives told CNBC the pullback following the announcement is a chance for investors to focus on individual stocks and double down on the winners.

"It's a golden opportunity to own the winners. We look back six to nine months from now, this was an opportunity, not the start of a downtrend for tech."

AAPL, MSFT Price Action: At publication time, Apple was down 1.32% at $169.99 and Microsoft was down 0.99% at $321.68.

Photos: courtesy of Apple & Microsoft.