Tech may be due for correction: Wolfe Research strategist

Steve Milunovich of Wolfe Research and Gene Munster of Loup Ventures join "Squawk Alley" to discuss the state of tech stocks in 2020.

Technology led all sectors in 2019 after returning 48% — its best year in a decade — but Wien envisions 2020 shaping up differently.

He said that certain of the FAANG names — Facebook, Amazon, Apple, Netflix and Google — could underperform the broader market, thanks to “growing political scrutiny and social blowback.”

While governments have tried to break up big tech in the past, Wien said that there could be “greater success” this time around given “widespread support from the American people.”

Wien also believes that there will be a “balkanization of technology” prompted by the lack of a Phase Two trade deal as China’s ability to acquire intellectual property isn’t capped. This will lead to an erosion of the economic co-dependence between the U.S. and China.

“The development of separate standards for 5G and other tech hardware proves to be bad news for the future of world economies,” he said.

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