Investors seem to have lost interest in technology stocks this year as they are in a safe place. Tuesday’s sell-off on Wall Street saw the six largest US tech companies drop more than $500 billion in market capitalization after reports of hotter-than-expected August inflation sent shares plunging. slope. Top tech investor Paul Meeks is advising investors to stay away for now – unless people are prepared to slam the shutters until the storm calms. “I think technology should continue to be avoided for the time being unless one is really a long-term investor. Now, many people say they have, but they feel confused by short-term losses. , so they really don’t,” Meeks, portfolio manager at Independent Solutions Wealth Management, told CNBC’s “Street Signs Asia” on Thursday. “Add inventory repair to existing troubles with semiconductors and that’s another reason to stay away because the field may not be able to function any better without semiconductor recovery. ” Against that backdrop, Meeks chose to stay defensive in the field, preferring a safer bet with “unusually high cash.” Here’s what he has to say about two tech giants: Apple and Samsung. Semiconductor exposure In the short term, Meeks prefers Apple because of its relative safety. “The most troublesome part of the tech industry worldwide right now is semiconductors. They’re having all kinds of trouble. First was the strong impact of the Covid-19 pandemic, but it’s gotten worse. More recently because semiconductors are now available, he said, he believes Samsung will be “hit hard,” as it derives almost a third of its revenue from its memory chip business. South Korea saw 18 percent growth in its semiconductor segment in the second quarter of the year, a performance Meeks hailed as a “recession hero.” However, he said the Investors should expect the segment to “take some damage” in the third quarter, with inventory adjustments occurring “quickly and furiously” after Samsung reported its earnings. , Meeks believes Apple is a safer bet in the short term because it doesn’t have much exposure to the underrated semiconductor sector. period cycle. While Apple does a lot of things, it’s not in the semiconductor business. Overcoming short- and medium-term risks, I would probably prefer Samsung. While both are great companies, Samsung is a lot cheaper,” he said. “What I see is that about a year from now, you’re going to want to join Samsung. Cheaper pricing, bigger margins, and you’ll be ready for a nice snapback in semiconductors. I’m just worried about that next few quarters between here and then,” he added. Apple shares are down 12.2% this year, even though they beat the tech-heavy Nasdaq Composite, lost nearly 25% of its market value in the same period, according to FactSet data, the company is rated highly by 78% of analysts Samsung has lost almost a third of its market capitalization in the public technology this year but appreciated by 94% of analysts including stocks FactSet data shows stocks with an average upside potential of 43.1%.