The record run for tech stocks is far from over, analysts and traders say

The tech surge is far from over, say analysts and traders who see even more record highs ahead for some of the sector's biggest names.

The Nasdaq composite hit yet another intraday all-time high on Monday, marking the index's 21st record-setting day this year. Tech stocks were again the main drivers behind the new Nasdaq record, with names like Alphabet making the biggest positive point impact on the index.

One of the most flamboyant gainers has been Amazon, with the online retail giant hitting its ninth record high year to date. Currently, analysts give Amazon an average rating of "buy," with a median price target of $956.88, implying 8 percent upside for the stock. Among the ratings, Susquehanna analyst Shyam Patil gives Amazon its most bullish target of $1,250, according to FactSet data.

Stacey Gilbert, head of derivatives strategy at Susquehanna, says it's looking good for tech stocks as a whole.

"I think it's fair to say that there are a lot of positive indicators out here in large, broad-cap tech right now," she said Friday on CNBC's "Power Lunch." She added that "money moving in via ETFs [and] money moving in via options flows" shows bullish sentiment.

Meanwhile, from a fundamental perspective, Gilbert pointed out that the percentage of earnings and revenue beats for tech stocks has been higher than that of any other sector.

David Seaburg, head of equity sales trading at Cowen & Co., is bullish on technology stocks. His eye on semiconductors as a growth area for the sector.

"Semis are [not completely dependent on] the PC market. You've got autos, you've got data center build-outs and you've got obviously cloud spending growing at 20 percent a clip a year for the next five or six years," he said Friday on CNBC's "Power Lunch." "So yes, I think there is a massive tailwind to technology."

Another large-cap tech stock that has been on a tear lately is Facebook. The social media giant is up over 23 percent year to date, and Todd Gordon of sees shares making new all-time highs. According to Gordon, not only has Facebook been on an uptrend since the start of the year and broken through "resistance" at $141, that level has now become "support" and is now providing Facebook with a floor to move up.

"We can use this as a launching pad to establish long Facebook trades heading into earnings," Gordon said Monday on CNBC's "Trading Nation."

To play Facebook to the upside, Gordon is buying the April 28 weekly 141-strike calls and selling the April 28 weekly 145-strike calls for $1.73 per share, or $173 per options spread. This means that Gordon is playing Facebook to close above $145 on April 28 expiration after the tech giant's earnings report that week. That would represent a 2 percent move up from Monday's levels.

Should Facebook make that 2 percent rally, Gordon could make a maximum reward of $227, meaning he will more than double his money on the trade.

The tech sector as a whole has rallied almost 10 percent in 2017.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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