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Nvidia shares declined dramatically after the chip maker said a slowdown in gaming-related sales would lead to quarterly revenue coming in less than Wall Street anticipated. 

The slide of as much as 9% resulted in significant losses in the broader tech sector, dragging down key US equity benchmarks. The stock fell to an intraday low of $172.42, the weakest price since July 27, before trimming the intraday decline to 8%. 

The firm noted its second-quarter revenue forecast could go down to $6.7 billion from $8.1 billion previously in a statement released Monday, citing weakness in the gaming segment. 

"Our gaming product sell-through projections declined significantly as the quarter progressed," Jensen Huang, Nvidia's founder and CEO, said in the statement. "As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory." 

Gaming sales plummeted 44% to $2.04 billion from the first quarter and slipped by 33% from the second quarter a year earlier. The firm also said it took second-quarter charges of $1.32 billion on inventory reserves. 

Nvidia's warning came amid speculations in the face of soaring inflation. After Nvidia shares plummeted, the tech-rich Nasdaq Composite turned lower. The S&P 500 also slipped down as its information technology sector shed more than 1% during the session. 

"We had been anticipating a slowdown in the gaming segment following the crash in cryptocurrency prices and associated mining demand as well as weaker macroeconomic conditions, and we previously had gaming sales sequentially declining for the remainder of 2022," Morningstar analyst Abhinav Davuluri said in a research note Monday.

"We think Nvidia could be due for a few challenging quarters, which could create a more attractive entry point," said Davuluri. The company's data center business should "prove more resilient" to macroeconomic headwinds, he added. 

Nvidia said Monday its second-quarter data center revenue was $3.81 billion, up 1% from the first quarter and up 61% from the prior-year period.