Nvidia has seen its share price suffer a sharp drop after it was forced to admit to its shareholders that "significant quantities" of older graphics chips for laptops were suffering from catastrophic faults.
The firm hasn't been able to determine the cause of the problem, but it believes it is related to the product's packaging material and the thermal design of some laptops.
A software driver has been released by the manufacturer in an attempt to stop the problem from spreading, with a spokesperson for the firm confirming that it had been supplied directly to vendors.
Specific product lines haven't been named but the company told investors that it was putting aside around $200 million (£100.7 million) to cover the expected costs of replacing and repair of affected parts and laptops.
The news comes just days after the firm told shareholders that it was lowering its revenue forecast for the second quarter due to pricing pressures and delayed product lines.