Chip stocks took a tumble Monday morning after Nvidia lowered its guidance for its fourth quarter 2018.
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 17 percent during early trading.
Other chip stocks fell on the news as well. Advanced Micro Devices dropped more than 7 percent and Micron Technology fell more than 4 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.
Nvidia's statement Monday morning adds to growing concerns about the Chinese economy. Apple also cited slowdowns in the Chinese market when it issued its own revenue warning earlier this month.
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