Goldman Sachs removed Nvidia Corp. stock NVDA, +1.97% from its Conviction List on Friday, citing increased near-term uncertainty after Thursday's quarterly earnings. The stock has fallen 15.5% since it was added to the list, while the S&P 500 SPX, +0.15% has fallen just 1.4% analysts wrote in a note. "We were clearly wrong on the stock as we underestimated the magnitude of the channel inventory build in mid-range Gaming GPUs (typically ~1/3 of Gaming GPU revenue) and, to a lesser extent, the correction in game console SoCs," analysts led by Toshiya Hari wrote in a note. "While we view the inventory correction in Gaming as a one-time reset as opposed to a change in the long-term growth profile, we believe it could take a few quarters before the market regains confidence in the growth trajectory of the business, especially given the weak economic backdrop (which could adversely impact Gaming GPU sell-through and prolong the digestion process)." Still, the bank is sticking with its buy rating on the stock, which it views as one of the better growth opportunity players in semiconductors, with a clear competitive lead that remains unchallenged. Nvidia predicted a fall in revenue in the fourth quarter versus the third quarter and year-earlier one, because of an inventory backlog of its Pascal-based gaming cards. The company recently introduced new gaming cards based on its Turing architecture. Shares were down 18% premarket, but are up 4.6% in 2018, while the S&P 500 SPX, +0.15% has gained 2.1%.