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Old Tech Could Be the New Trade

Stick with the old tech names that can continue to see higher share prices, Tim Seymour of EmergingMoney.com said Monday.

"What's going on with big, old, unsexy tech is that you're trading, still, at a very big discount to the S&P," he said.

On CNBC's "Fast Money," Seymour said that he liked a company such as Microsoft, which has "a lot more cloud momentum" and the declining PC business has been fully priced in.

"This to me is about allocation," he added. "This is why there's more room to go. These are big companies, big market caps. I'd stay in this trade."

(Read More: Top 3 Tech Stocks Aren't in the US: Pro)

Tech stocks that have posted year-to-date gains include Microsoft, as well as Intel, Western Digital, Xerox and Yahoo.

Dan Nathan of RiskReversal.com said that many of the old-tech names, some at multiyear highs, were working because they're seen as "cyclical tech."

"The trade may be up at this point," he added, acknowledging that stock prices were "still cheap."

"The PC supply chain – are you kidding me?"

Nathan also alluded to Apple's announcement at its Worldwide Developers Conference that its Macintosh operating system had gained market share of desktops at the expense of PCs.

"This is not a secular change that's likely to work its way in PC's way here," he said. "Mac is gaining steam here, and it's going to continue that way."

StockMonster's Guy Adami said that Microsoft was "ahead of itself" because investors had been looking for underperforming stocks.

Adami also cited Jim Chanos calling Western Digital and Seagate two good short ideas. While not recommending a short at this point, Adami added, "You should have it in the back of your mind."

(Read More: Hard Times Ahead for Hard Drive Business: Chanos)

Trader disclosure: On June 10, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Dan Nathan is short XLU June 38/36 put spread; Dan Nathan is long CAT July 87.50/80 put spread; Dan Nathan is long FB June/July 25 call spread; Dan Nathan is long AAPL June 14 435/425 put spread; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami's wife, Linda Snow, works at Merck; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long SBUX; Josh Brown is long AAPL; Josh Brown is long XLU.

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