Don't panic: this isn't a tech selloff, according to famed tech investor Dan Niles.
Niles, founding partner of AlphaOne Capital Partners, also recommended taking advantage of temporarily dragging FAANG stocks to invest in Facebook.
"Let's be realistic, this isn't much of a selloff," Niles said Thursday on CNBC's "Fast Money." "These stocks are all down a few percentage points, and I think it speaks to the fact that we haven't had a real selloff since January 2016."
Stocks of the FAANG companies -- Facebook, Apple, Amazon, Netflix and Google parent company Alphabet -- all dropped roughly 1 to 4 percent this week for a combined market cap loss of about $60 billion. What's more, Facebook, Amazon, Apple and Alphabet marked four of the five biggest drags on the S&P 500.
Despite the combined losses, Niles still recommended buying Facebook, citing the social media giant's double-digit earnings and revenue gains, among other metrics.
"There's a big difference between an Amazon at single digit operating margins, and a Facebook at 50 percent operating margins, or a Netflix that has negative 3 cash flow for the next couple years," Niles said.
"From a standpoint of risk and reward, it's one that we really like," he added.
And while he maintains his confidence in big tech, Niles does think the market will start getting more competitive for tech companies. As big tech continues to crowd the market, he foresees semiconductors and internet names struggling.
"I think other areas of tech are likely to struggle," Niles said. "But I do still think there are still some really good buys within technology."