Tech stocks have reached the highest levels in 16 years, but two strategists say there's more to come, deeming the group one of the best to buy right now.
One look at the XLK — the exchange traded fund tracking technology, the sector with the greatest weighting in the S&P 500 — will show the group has risen steadily and hit its highest levels since 2000.
Eddy Elfenbein, editor of the Crossing Wall Street blog, said Friday on CNBC's "Trading Nation" that tech stocks today do not resemble 1999 or 2000, the so-called dot-com bubble, with "a lot of smaller companies, with not much in the way of earnings; or if they had earnings, they were trading at huge, huge multiples to them."
"Lately with the tech sector, I think the fundamentals have been driving it," said Elfenbein. "It's looking quite good."
Elfenbein says he particularly likes Microsoft, noting a solid earnings report and dividend, and the company adapting to a new climate for tech, moving into the cloud space.