The company revised its quarterly revenue guidance from $2.70 billion to $2.20 billion due in part to "deteriorating macroeconomic conditions, particularly in China," it said in a statement. Nvidia fell 13.8 percent on Monday.
Other chip stocks fell on the news as well. Advanced Micro Devices dropped 8 percent, and Mellanox Technologies fell more than 3 percent. Chip stocks had been on the rise just last week after four companies beat earnings expectations for the quarter. Twenty-nine out of 30 stocks on the PHLX Semiconductor Index were positive on Jan. 24, marking the index's seventh-best day in a decade. The index fell more than 2 percent on Monday.