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Top analyst gives best tech plays for the 2nd half

Top tech plays for second half

The technology sector outperformed the broader market in the first half of the year, and according to UBS Managing Director Steve Milunovich, the tech party could continue, at least for some names.

On Wednesday's episode of "Fast Money," Milunovich laid out his top tech picks for the second half.

Leading the pack was Apple, which finished the first half of the year higher by roughly 16 percent. According to Milunovich, there could be more upside to come for the iPhone maker. "The catalysts clearly are the new products," he said. "We're going to get two new bigger iPhones, and we think that's going to be huge."

An Apple Store employee rings up a purchase of the new iPhone 5S in Palo Alto, California.
Getty Images

Milunovich also said he expects Apple to unveil an iWatch product in the second half, which could lead investors to "believe in Apple innovation again."

Milunovich's other top picks didn't fare as well as Apple in the first half. Cognizant Technology and Nimble Storage, down 1 percent and 34 percent, respectively, so far this year, made it to the top of Milunovich's "buy" list despite their lagging performance.

Regarding Cognizant, Milunovich said that it's a "terrifically run company."

"As we get into later in the year, and particularly into 2015, we think it's going to be a strong ramp for Cognizant," he said.

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Nimble Storage, which provides flash and cloud-based storage solutions, could benefit by innovating in a relatively flat storage environment, Milunovich said.

"Nimble has a new architecture. Storage these days is a mix of disk and flash. They have a new file system that is optimized for that," he said.

For his last pick, Milunovich looked toward the 3D printing space, which has struggled so far in 2014, and chose printer-maker Stratasys.

According to Milunovich, Stratasys has greater focus and better near-term earnings growth at a lower valuation compared to rival 3D Systems.

By CNBC's Michael Newberg