Editors' pick: Originally published Dec. 30.

The U.S. is back in an "in between" period where individual tech companies have "great stories," rather than the whole sector, Elevation Partners cofounder Roger McNamee said on CNBC's "Squawk Alley" on Friday morning. 

For example, Pokemon Go's success this past year was great for Nintendo  (NTDOY) and next year Snapchat parent company Snap is expected to have a big IPO in March, he noted. 

"The real problem was that it was the first year after smartphones. We didn't have that big monster product cycle driving everybody," McNamee explained. 

Next year will be another year of waiting for artificial intelligence, self-driving cars and virtual reality to really take hold, he said. "I think it's going to be a year of individual stocks and we'll have to just watch."

This past year was also a year of confronting "unpleasant truths" in the sector, such as the role Facebook, (FB - Get Report) Twitter (TWTR - Get Report) and Alphabet's (GOOGL - Get Report) Google had in the election, McNamee said. It's impossible to tell just what will happen under President-elect Donald Trump's administration next year, but his pro-business policies should be "really good" for markets

"What I worry about is that the levers at their disposal right now are pretty much already blasting things out pretty intensely so it's not clear to me that they can do much without overheating the whole thing and how long that process will last," he explained. "But as my former partner used to say, we don't want him to cut off the market before we get the speculative blow off we all so richly deserve." 

(Facebook and Google are held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings here.)