Nvidia has issued a profit warning that has seen its stock plummet as much as 25%.
Weak demand, delayed production of a new products and price-war cost cuts were all cited for the company predicting lower than expected revenues.
In addition, the chipmaker has admitted that it will take a charge of up to $200 million in order to cover anticipated warranty, repair and return costs associated with a defect on some of its chips.
Full details have not been provided, but it seems some laptop GPUs are overheating and failing at a much higher rate than would be expected.
Rather than the $1 billion expected by analysts, Nvidia has said its second-quarter revenue is more likely to be in the range of $875 million to $950 million.