Nvidia's slump helped drag chip stocks lower, with the Philadelphia Semiconductor Index <.SOXX> down 2.8 percent in midday trading.
Nvidia said cost increases led to a greater-than-expected shift to lower-priced graphics chips, as well as personal computers running lower-end integrated graphics. The company also cited economic weakness in Europe and China.
Nvidia now expects revenue of $800 million to $820 million in the quarter ending August 1, down from its estimate of $950 million to $970 million. LINK
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