Chips stocks have been caught in the middle of another U.S.-China showdown.
The SMH semiconductor ETF, which holds stocks such as AMD and Intel, fell 4% in the past week. Losses accelerated Friday after the Trump administration moved to cut off China-based Huawei from accessing chips made with U.S. software or technology.
This is just the latest time chips have been used as a weapon in the trade war, but it shouldn't be a major worry for investors, says Patrick Moorhead, president and principal at Moor Insights & Strategy.
"This Huawei spat, China spat — it's just another episode in this ongoing trade and IP. I wouldn't look too closely. I mean this is, what, the 12th version of this of these bilateral spats? And the fact is, both countries need each other," Moorhead told CNBC's "Trading Nation" on Friday.
U.S. chipmakers, for instance, generate a major chunk of revenue from China. One of the United States' largest chipmakers, Intel, pulls in nearly 30% of its revenue from the country.
Moorhead says investors any weakness should be taken as an opening.
"I think it's a buying opportunity. Again, I don't see any of this sticking, or having long-term indicators given the symbiotic relationship that that we have with China and particularly some of the stocks that are down like Qualcomm. First off, Qualcomm gets credit for intellectual property for every smartphone that ships regardless of if it's going into China, and there's only a few handful of Qualcomm chips even going into Huawei gear. So some of the stocks that are down are a little bit odd, in my opinion," he said.
Qualcomm was one of the hardest hit chipmakers on Friday. Moorhead says he is particularly bullish on Qualcomm as well as Intel and Nvidia. Nvidia is the top performing chipmaker this quarter.