It is not bad for Nvidia. It is bad for hype. Nvda position was good for being a company selling chips with lots of power. But now that not much power is needed, reliance on nvidia is less. And anyone with simpler processors has capabilities to sell AI chips.

Nvidia will still sell many chips. It just won’t be the only one capable of selling them. The hype is gone. The moat is gone. The excitement and enthusiasm from investors is gone. This is called a correction.