Big tech companies need to produce compelling new products or see their stock prices go south, Elevation Partners co-founder Roger McNamee said Monday.
"Technology is all about product cycles, and at the scale of the industry today, in order to really move the needle, you have to have something huge like smartphones," McNamee said on CNBC's "Squawk Alley." "But now that smartphones are mature, we're between major product cycles, and it's my view that this is going to be a year where in the absence of a compelling product story, stocks are going to [go down]."
Still, McNamee said Apple is relatively underpriced and is "uniquely customer-focused" with a lot of revenue.
T. Rowe Price portfolio manager Ken Allen told CNBC that big-cap tech is in a period of transition, and the cloud-based sector isn't moving fast enough to offset the decline of the PC.
"While it's not a new trend, the magnitude of how significant cloud computing will be for the tech industry is very large and I think that continues to provide opportunities looking forward," he said on "Squawk on the Street."