Gene Munster Turns Cautious On Tech Stocks, But Not Apple Or Tesla: Here's Why

Zinger Key Points
  • Gene Munster expects Apple to expand into the automotive business.
  • He also likes Tesla, despite the company's high valuation.

Loup Ventures' Gene Munster is cautious on the broader technology sector, but there are two big tech names he remains bullish on.

"I mentioned my caution about broader tech. I do not have caution around Apple Inc AAPL. I'm optimistic that they will continue to power through this," Munster said Wednesday on CNBC's "TechCheck."

What To Know: Apple has a sustainable business that continues to grow, yet the company continues to look for opportunities to expand into other large markets, Munster said.

"I don't think Apple is going to have problems in the next three to six months in anticipation of this recession," he said. "I think Apple is in a great place."

Munster told CNBC that he expects Apple to enter the automotive business. His comments suggest an announcement could come sooner rather than later.

"If they do make good on that opportunity that they are working on, that is a massive unlock in terms of value and I think that would continue to appreciate shares through the back half of this year," he said. 

Munster also remains optimistic on Tesla Inc TSLA

"Despite its high valuation, I just think that what they're doing is something that's incredible," he said, adding that Tesla is putting a lot of pressure on traditional automakers.

See Also: Tesla Playing Quidditch While EV Rivals Hockey Around Mining Goals: Morgan Stanley Analyst

If you aren't interested in Apple or Tesla, Munster noted that he expects M&A activity to pick up in the back half of the year and investors can look for acquisition targets. 

"A lot of these darlings that are down 60, 70, 80%, they're going to get scooped up," he said.

AAPL TSLA Price Action: At time of publication, Apple was down 2.12% at $151.24 and Tesla was down 3.52% at $771.85.

Photo: Automobile Italia from Flickr.

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