> This is probably a massive overreaction.
You may be rights but here is the other side. The AI/software/hardware/data center/energy trade got very crowed by levered money(Hedge funds).
1) That trade has had a huge run up lead by NVidia with alot of funds hedging their gains till the new year for tax reasons. They were al looking for a reason to sell and now could continue to lighten even more.
2) Nvidia is a large portion of the market right now. If you are a hedge fund that is measured against a US index then you probably have bitten the bullet and bought some NVidia exposure so you don't underperform if it continues its growth and the AI story fulfills its promise.
Now that NVidia is falling and you can make a story that it may under perform the market t his year you may see even more fast money dumping it as they no longer need to worry as much about it skewing market returns as much now.
3) if its true that you now need atleast an order of magnitude less power and chips to train a model then Nvidia was due to have a multiple decrease. This knocks onto the data center and power trades that also will have a multiple decrease on their pricing.
You may be right that this is an undeserved sell off, but given the recent growth it also seems like you can make the case that the whole trade got ahead of themselves and we were due a pull back to more properly value these companies earnings prospects.
One thing that is always useful to remember about the markets is that when you are priced for perfection like NVidia was, its signs that your long term growth may be slowing will affect your share price more than short term signs that your are doing what was expected of you.