"Brace yourself" for more selling in technology stocks, warns Gene Munster, top tech analyst turned venture capitalist.
In Wednesday's market rout, tech stocks led the way lower. The Nasdaq lost 4 percent, while the Dow Jones Industrial Average and S&P 500 tanked more than 3 percent.
In premarket trading Thursday, Netflix, Amazon, Facebook, and Apple were all lower. The Dow was indicted for a decline at the open, though futures were much lower earlier in the morning.
Tech giants, including Netflix, Amazon and Facebook, could see another big "step down" of 5 percent," Munster told CNBC's "Squawk Box," a day after the market plunge. Munster didn't elaborate on the timeline.
Munster, the founder of Loup Ventures, predicted the notable exception will be Apple, with Wall Street analysts expecting to see the average selling price of iPhones continuing to rise.
"I'm still bullish on the sector more broadly for other reasons," Munster said. "But the near term psychology has a way of playing itself out in historical patterns."
Munster argued in July that large-cap tech stocks as a whole are not a safe bet for investors anymore, saying at the time he expected a "divergence" in the next 6 to 12 months.
"Apple and Google are probably in the best camp," Munster told CNBC Thursday, with underpeformance from Netflix and Facebook.
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