“Our Q4 outlook for gaming reflects very little shipment in the midrange Pascal segment to allow channel inventory to normalize,” said Chief Financial Officer Colette Kress. Revenue for Nvidia’s biggest segment, gaming, fell below the $1.89 billion FactSet consensus estimate, coming in at just $1.76 billion for the quarter.

Nvidia shares were further depressed by a spate of analyst chiming in following the earnings results. Susquehanna, in particular, forecasted lesser cryptocurrency-related revenue by Nvidia, but not to the extent as reported.

“While we have been the crypto-GPU bears on the Street, admittedly we were not patient enough to let this unwind fully play out, and may have also underestimated the size of this Ethereum GPU bubble,” Susquehanna wrote. “That said, we are long-term bulls on NVDA as we believe in the A.I. inference opportunity, pro-viz upgrade cycle and 7nm refresh coming this fall. While NVDA’s report was unexpectedly bad, there is one thing we know… AMD will likely be worse.”

Bear Market Here for Chipmakers?

Per an Investopedia article, “Chip stocks could punish complacent shareholders in the coming months, entering a bear market cycle that lasts several years and gives up the majority of gains posted since 2015. That decline could proceed despite continuing uptrends in other high-tech groups, confusing market players who don’t understand the semiconductor group’s perennial boom-bust cycles or its capacity to trade against broad benchmarks for months or years at a time.”

However, there also appears to be positive sentiment among analysts who feel that this bearish outlook could be overblown. Where other analysts spy weakness in the semiconductor industry, others are seeing growth.

“We believe the current semiconductor capital spending environment is in the midst of expansion,” J.P. Morgan analyst Harlan Sur wrote in a note.

For more market trends in technology, click here.