Shares of Nvidia fell 4.6 percent Tuesday, adding to their steep losses from the previous session, as several analysts bailed on the chipmaker following a dire sales warning.

Analysts at Morgan Stanley and Needam downgraded the stock. Another analyst at Bank of America Merrill Lynch removed it from its list of best ideas.

Nvidia dropped 13.8 percent Monday, its worst single-day performance since Nov. 16, after the company slashed its fiscal fourth-quarter revenue guidance to $2.2 billion from $2.7 billion. In a statement, Nvidia said that "deteriorating macroeconomic conditions, particularly in China, impacted consumer demand for NVIDIA gaming GPUs," a key business segment for the company.

"Missing the quarter this badly in gaming indicates more significant challenges than we had anticipated, given that this is still a channel fill quarter for midrange/high end," said Morgan Stanley analyst Joseph Moore, in a note Tuesday. "This becomes a show me story with lower P/E assumptions."