However, analysts said tech stocks shouldn't expect to face any major long-term backlash from the surprising election results.
Despite President-elect Donald Trump's heated exchanges with Amazon CEO Jeff Bezos, Mizuho Securities said it wasn't overly concerned with Trump trying to go after Amazon, given its size, scale and breadth in e-commerce. Amazon was trading more than 2 percent lower.
The firm said it expects a neutral to slightly positive impact on social media stocks Facebook and Twitter, given Trump's penchant for tweeting and engaging on social media. Twitter had its highest tweet days during the election debates.
"Part of what we're seeing today … might be inklings of a rotation out of secular growth stocks into cyclical growth stocks," Savita Subramanian, head of U.S. Equity and Quantitative Strategy at Bank of America Merrill Lynch, said in response to a CNBC question on a media call Wednesday afternoon. She also said any expectations for a strong dollar would weigh on the tech stocks.
CFRA Research said Wednesday it sees many large U.S. IT firms potentially benefiting from Trump's proposal for a "repatriation of corporate profits held offshore at a one-time tax rate of 10 percent." It said IT firms could see increasing domestic growth investment, stock buybacks, and dividend payouts. On the other hand, it noted that Trump's hard stance on trade could negatively impact the sector, which generated a high percentage of non-U.S. revenues in 2015.