Nvidia(US:NVDA) Zheng Quan Shi Bao Wang·2025-09-13 00:06Core Viewpoint - Nvidia is gradually scaling back its nascent cloud computing business, specifically its DGX Cloud service, which indicates a shift in strategy and a reduction in competitive pressure with major cloud service providers like Amazon Web Services [1][2][3] Group 1: Business Strategy - Nvidia has reduced efforts to attract enterprises to use its DGX Cloud service, planning to primarily utilize it for internal purposes, including support for its own researchers [2][3] - The scaling back of the cloud business may reflect limited demand and market resistance to Nvidia's pricing strategy, as AI developers find the DGX Cloud servers to be more expensive than traditional cloud services [3] - Nvidia's recent quarterly report no longer specifies that its cloud spending commitments include DGX Cloud, suggesting a decreased priority for external customer service [3][4] Group 2: Market Performance - Following Nvidia's news, major tech stocks in the U.S. saw a rise, with Tesla surging over 7% and the Nasdaq index reaching a historical high [1][6] - Goldman Sachs highlighted that AI-driven tech giants and loose monetary policies are the two main pillars supporting the current bull market in U.S. stocks [1][6] - Despite uncertainties, Goldman Sachs projects a steady 7% growth in earnings per share for the S&P 500 over the next two years, reaching $262 and $280 respectively [6][8] Group 3: Competitive Landscape - Nvidia's CEO had previously envisioned a robust future for DGX Cloud, aiming to democratize access to AI chip servers for large enterprises [4] - The introduction of DGX Cloud Lepton, a new cloud service platform, has faced slow initial development, as it competes with existing cloud service providers [5]