It could be a bleak outlook for semiconductors as chipmaker Nvidia is forecasting a weaker revenue guidance, which could benefit the Direxion Daily Semiconductor Bear 3X ETF (NYSEArca: SOXS).

Nvidia fell over 14 percent on Monday after it cut its fourth quarter revenue guidance to $2.2 billion from $2.7 billion.

“Deteriorating macroeconomic conditions, particularly in China, impacted consumer demand for NVIDIA gaming GPUs,” the chipmaker said in a statement.

It was reported last week that China’s economy grew at a rate of 6.6 percent last year based on numbers coming out of China’s government. The figure was in line with analyst expectations, but represented its slowest pace of growth in almost 30 years.

“The one thing with China is it’s not a made-up story. It’s not like companies are blaming just the Fed or the weather,” said Quincy Krosby, chief market strategist at Prudential Financial. “As we go through the week, if this becomes a theme in many different sectors, it’s going to lend urgency to the idea that the global economy is slowing and the need for more stimulus.”

SOXS gained 6 percent on weakness in the semiconductor sector. It’s currently trading below its 200-day moving average.

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