Nvidia's Shares Sink on Analyst's Warning

Updated from 3:14 p.m. EDT

Nvidia(NVDA Quote) shares sank more than 13% Monday, after an analyst predicted that the chipmaker will negatively pre-announce its third-quarter financial results and that it will sell its chipset business.

Pacific Crest analyst Michael McConnell downgraded Nvidia to a Neutral rating Monday and cut his financial estimates for the chipmaker.

Acknowledging that he is late to downgrade Nvidia, with shares down 73% so far this year, McConnell said he thinks the stock could be vulnerable to a further 25% downside. What's more, he projects that Nvidia's EPS next year will be 50% lower than the average Wall Street estimate. ...