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Chips get chopped
Chips get chopped

A selloff in the semiconductor space and the broader market after a lowered outlook from Microchip Technology could create opportunity in a couple of other names, OptionMonster's Pete Najarian said Friday.

Intel and Micron were quality names that were lumped in with the sector, he said.

"I think they both got oversold today based upon this Microchip news, and because of that I lean toward those names," he said.

Intel's Edison chip
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On CNBC's "Fast Money," Najarian took issue with the selloff in the semiconductor makers based on Microchip's forecast.

"I'm not so sure why a $7 billion company has better vision than Intel, who hasn't been nearly as bearish about China," he added.

Najarian said that he had bought shares of Intel but not Micron.

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Stuart Frankel's Steve Grasso noted strength in the sector, with Intel up 22 percent year to date, Micron up 27 percent and Symantec up 26 percent.

This could be the next tech stock to fall
This could be the next tech stock to fall

"I would rather be with Intel. If the market really continues to be weak here, people are going to run for cover, not unlike what they would do with an Exxon Mobil," he said. "Totally different sector, but they're looking for protection in what they feel like they know."

Rajvindra Gill, senior research analyst at Needham & Co., said that he would buy such names as memory stocks, such as Micron and SanDisk, which historically have rebounded "pretty significantly" when the sector recovers.

"What the stock prices are reflecting now is not only an inventory correction but a drop in demand," he said. "I think you would buy the secular growth stocks, which have been hit hard."