Has Nvidia ($NVDA) Peaked?

This week: 15% correction for Nvidia ($NVDA)

Once the undisputed engine-core of the AI gold rush, Nvidia may now be cooling off. Investors alike are all wondering — was this a sprint, or a sustainable run toward inevitability?

Prior to this correction, Nvidia was the poster child of the AI boom. From 2022 to early 2025, the stock soared, riding demand for GPUs powering generative AI and data-center firepower.

But as 2025 has unfolded, competition has emerged. More specifically, Google’s recent announcements threaten to chip away at Nvidia’s monopoly on AI workloads.

On top of that, there are looming fears of an AI bubble amongst investors. Many consider the stock to be overvalued in this current climate. So when any sign of “not-perfect” growth emerged, the multiples became fragile.

However, it is worth noting that this 15% drop seems to reflect a broader pullback in tech — not just a single company slump — as investors rotate out of high-growth, high-risk names into more stable sectors.

Bearish View:

The entry of alternate AI-chips (TPUs, in-house solutions by big tech) could permanently erode their dominance.
If AI model-training demand cools, or if companies reassess hardware spend after an infrastructure binge, demand for high-end GPUs could drop — with cascading effects.
High valuation means volatility — Nvidia is now vulnerable to “sentiment shocks.” Anything from interest-rate shifts to geopolitical events can impact them.

Bullish View:

Historically, after major drawdowns, Nvidia has bounced back strongly — some patterns show returns of over 300% within two years after past 35%+ dips.
The company still sits at the heart of most large-scale AI infrastructure. Not all workloads are easily moved to alternatives; many legacy systems, cloud services, and new workloads may continue to rely on Nvidia GPUs for years.
If AI adapts, evolves and enterprise adoption scales (beyond hype), demand for powerful chips could rise again — especially if new architectures (data-center GPUs or specialized accelerators) keep rolling out.

The Good Vibes Lens:

Use this dip to scout — If you believe in long-term AI adoption, this correction might offer a discounted entry into a sector that could roil markets again.
Watch for catalysts — New earnings reports, client contracts, announcements of cloud-AI infrastructure deals, or new chip launches could re-ignite the rally.
Balance risk — Given volatility and macro uncertainty, treat NVDA as one piece of a broader portfolio; don’t anchor all hopes on “AI going full-tilt.”
Stay alert — Monitor competitive moves (TPU adoption, custom chips by big tech), macro signals (interest rates, trade tensions), and real-world adoption (are companies still investing in AI hardware?).

Disclaimer: none of this is financial advice. Investing and/or trading can be risky. We are not guaranteeing success, and this publication is for entertainment purposes only.