Nvidia Corp. shares are plunging in Monday morning trading after the company warned that it would miss holiday-quarter revenue expectations by a wide margin due to “deteriorating macroeconomic conditions,” including in China.

The chipmaker lowered its fiscal fourth-quarter outlook on Monday to $2.2 billion from $2.7 billion, blaming weakness in China and a more cautious approach from its customers for shortfalls in its gaming and data-center businesses. The company’s original forecast, issued back in November, also came in far below analysts’ expectations at the time, as Nvidia NVDA, -2.20% warned that the end of the crypto-currency boom was contributing to excess inventory levels for its older gaming chips.

Opinion: ‘Crypto hangover’ has Nvidia staggering into holidays with a big headache

The stock is now off 12% in morning trading Monday after opening down 15%. Peer stocks are trading lower as well.

Shares of Advanced Micro Devices Inc. AMD, -2.11% , which reports results Tuesday afternoon, are off 5%, while shares of Intel Corp. INTC, -0.85% , which disappointed with its data-center results last week, are down 1.3%. The PHLX Semiconductor Index SOX, -1.51% has lost 1.5%.

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Nvidia said in a release that the crypto impact “proceeded largely in line with management’s expectations” but that the company also saw weaker-than-anticipated performance of “certain high-end GPUs” running its new Turing architecture. The company expects its GAAP and non-GAAP gross margins to be impacted by about $120 million as a result of “charges for excess DRAM and other components” associated with its new forecast for the fiscal fourth quarter, which ended in January.

Benchmark analyst Gary Mobley wrote that he and his team “still believe in the Turing cycle” and have a buy rating on the shares, though he lowered his price target to $190 from $240 in conjunction with the latest announcement.

In a note titled “It’s Never Just One Quarter,” Wells Fargo analyst Aaron Rakers said it was “difficult (impossible) to ascertain color on the magnitude of downside relative to the aforementioned drivers or the company’s expectations of a recovery looking forward” given that management didn’t address investors after issuing the warning. He rates the stock at outperform with a $170 price target; Nvidia’s stock is now trading near $140.

Bernstein’s Stacy Rasgon took a similar view, writing that “the old adage seems true” in that “there is never only one cut.” He said that Nvidia has gotten swept up in “a perfect storm with cryptobubble collapse, geopolitical fallout, and cloud slowdowns, as well as a gaming industry that has been slower to embrace their new features.”

Rasgon wrote that he feels “fine” about Nvidia’s long-run positioning in the data-center business, though that part of the company’s warning may be the most nerve-wracking to investors. “The business is lumpy under the best of circumstances, and short-term fluctuations in the trajectory have little or no bearing on how one might view the long term,” he said.

He rates the stock at outperform with a $250 price target.

Opinion: This part of Nvidia’s warning should scare investors the most

Chief Executive Jensen Huang called the quarter “extraordinary, unusually turbulent, and disappointing” but reiterated confidence in the company’s “growth drivers,” including gaming, design, high-performance computing, and autonomous driving.