Core Viewpoint - Nvidia is gradually scaling back its nascent cloud computing business, specifically its DGX Cloud service, which indicates a shift in strategy and a response to limited demand in the cloud services market [2][3][4]. Group 1: Nvidia's Cloud Business Adjustments - Nvidia has reduced efforts to attract enterprises to use its DGX Cloud service and plans to primarily utilize this service for internal purposes, supporting its own researchers [2][3]. - The scaling back of the cloud business may reflect 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 Context and Performance - Following Nvidia's announcement, major tech stocks in the U.S. saw a rise, with Tesla surging over 7% and the Nasdaq index increasing by more than 1%, reaching a historical high [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 [6]. - Despite uncertainties, Goldman Sachs projects a steady growth of 7% in earnings per share (EPS) for the S&P 500 index over the next two years, reaching $262 and $280 respectively [6][8]. Group 3: Broader Economic Indicators - The earnings growth of the "S&P 493" (excluding the tech giants) was 7%, while the tech giants experienced a remarkable 28% growth, contrasting with a generally pessimistic macro narrative [7]. - Current valuations of the S&P 500 index are high, with a price-to-earnings ratio of 22, placing it in the 96th percentile since 1980, indicating potential caution for investors [8]. - The report from Goldman Sachs also noted that the technical buying momentum supporting the market is weakening, suggesting a shift in market dynamics [8].

Core 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]

Core Viewpoint - Nvidia is scaling back its cloud computing business due to limited demand for its DGX Cloud services, which were initially aimed at attracting enterprise customers [3][4] Group 1: Strategic Adjustments - Nvidia plans to use most of its DGX Cloud server capacity for internal research rather than for external customers, indicating a shift in focus [4] - The company previously committed to spending $13 billion to rent its AI chips from large cloud service providers, aiming for $150 billion in revenue through a rental business model [3][4] Group 2: Market Challenges - AI developers are resistant to the high prices of DGX Cloud servers, which are typically more expensive than those offered by traditional cloud service providers [3][4] - The reduction in cloud business efforts may alleviate competitive pressure from major cloud service providers, which account for half of Nvidia's revenue [3] Group 3: Future Prospects - Nvidia's CEO had previously expressed ambitious goals for DGX Cloud, envisioning direct rentals of AI chip servers to large enterprises [6] - Despite earlier claims of success, recent disclosures indicate a lack of prioritization for external customer services in the cloud segment [4][6] Group 4: New Service Models - Nvidia is exploring new service models, such as the DGX Cloud Lepton platform, which allows companies to access GPU resources through a network of cloud service providers [7] - Unlike the original DGX Cloud, the Lepton platform allows cloud service providers to list available GPU server capacity independently, which may create competition with Nvidia's own offerings [8]

Core Viewpoint - Nvidia is scaling back its nascent cloud computing business, particularly its DGX Cloud service, which indicates limited demand and potential pricing resistance in the market [2][4][3]. Group 1: Nvidia's Cloud Business Strategy - Nvidia is reducing efforts to attract enterprises to its DGX Cloud service, planning to primarily use it for internal purposes [2][3]. - The shift in strategy alleviates competitive pressure with major cloud service providers, particularly Amazon Web Services, which accounts for half of Nvidia's revenue [2][4]. - The company has stopped disclosing its cloud spending commitments for DGX Cloud in its latest quarterly report, suggesting a decreased focus on external customers [4][5]. Group 2: Market Context and Performance - Following Nvidia's announcement, major tech stocks in the U.S. saw a significant rise, with Tesla surging over 7% and the Nasdaq index reaching a historical high [2][9]. - 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 [2][9]. - Despite uncertainties, Goldman Sachs projects a steady 7% growth in earnings per share (EPS) for the S&P 500 index over the next two years, reaching $262 and $280 respectively [9][10]. Group 3: Financial Performance and Future Outlook - Nvidia's CEO previously expressed ambitious goals for DGX Cloud, aiming to democratize access to AI infrastructure for large enterprises [5]. - The company's software business, including DGX Cloud, was reported to have an annualized revenue of $2 billion as of late 2023 [5]. - The performance of the "Tech Seven" index, which includes major tech companies, showed a remarkable 28% growth in earnings, contrasting with a 7% growth in the broader S&P 493 index [10].

Welcome to our GTC Paris at VivaTech 2025 wrap-up. Hello everyone, I'm Dion Harris, Senior Director of HPC and AI Infrastructure Solutions at NVIDIA. Europe was the birthplace of the first two industrial revolutions and where modern manufacturing emerged.Now, the fourth industrial revolution has arrived: the age of AI. This year, we showcased something remarkable—the acceleration of AI across every corner of Europe. In his keynote, Jensen Huang shared how we're entering the era where agentic AI can understa ...

Core Viewpoint - Nvidia is at the forefront of the AI revolution, designing highly sought-after AI chips and expanding into a comprehensive range of AI products and services [1][5][7] Financial Performance - Nvidia achieved record revenue of $130 billion in the latest fiscal year, a significant increase from $27 billion two years ago, showcasing its success in the AI boom [2] - The company's stock price has surged 1,500% over the past five years, reaching new highs recently [3] Market Position and Innovation - Nvidia is a key player in the AI sector, offering powerful GPUs and various accompanying products, which are essential for AI development [5][7] - The recent launch of DGX Cloud Lepton allows developers to access GPUs from multiple cloud providers, further solidifying Nvidia's market position [6] Risks and Challenges - Nvidia's gross margin has remained above 70%, but it recently dropped to 60% due to a charge related to lost sales in China, which accounted for 13% of sales last year [9][10] - U.S. export controls on chips to China have led Nvidia to exclude this market from its sales forecasts, although U.S. customers represent nearly half of total sales [10] Investment Considerations - Nvidia's stock trades at 35 times forward earnings estimates, which is higher than a few weeks ago but lower than its peak of over 50 [11] - Despite the current high stock price, Nvidia's strong earnings track record and market position suggest it remains a reasonable investment for long-term holders [12][13]

Core Offering - DJX Cloud Leptin provides on-demand access to a global network of GPUs across clouds, regions, and partners [1] - Multicloud GPU clusters are managed through a single unified interface [1] - Connects developers to GPU compute, powering a virtual global AI factory [3] Key Features - Fast provisioning allows developers to quickly scale up the number of nodes without complex setups [2] - Pre-integrated tools and training-ready infrastructure enable developers to start training immediately [2] - Real-time progress monitoring provides insights into GPU performance, convergence, and throughput [2] - Supports deployment of NIM endpoints or models in multiple clouds or regions for fast distributed inference [2]

Core Insights - Nvidia is positioning itself as a key player in the global AI infrastructure landscape through partnerships with European countries and companies [1][5] - The company aims to enhance AI computing capacity in Europe by a factor of 10 over the next two years, amidst challenges from U.S. export restrictions [5] Partnerships and Projects - Nvidia announced a partnership with French startup Mistral to create an "AI cloud" utilizing 18,000 Nvidia Grace Blackwell chips [6] - Infrastructure projects are also being developed in Italy and Armenia [6] - Collaborations with telecommunications companies like Orange and Telefonica focus on deploying AI applications and large language models [7] Infrastructure Development - Nvidia is building an "industrial cloud" in Germany featuring 10,000 GPUs tailored for European manufacturers [7] - The concept of "sovereign AI" emphasizes the importance of regional data centers and servers for EU users [8] - Nvidia is establishing "tech centers" across Europe to promote advanced research and workforce upskilling in countries such as the U.K., France, Spain, and Germany [8] Product Expansion - The company expanded its DGX Cloud Lepton product, integrating it with AI model repository Hugging Face, allowing global access to GPUs for AI applications [9]

Core Insights - NVIDIA announced the expansion of its DGX Cloud Lepton, an AI platform that connects developers with a global compute marketplace for building AI applications [1][5] - The platform now includes contributions from various cloud providers, enhancing access to high-performance computing resources [2][8] - Hugging Face introduced Training Cluster as a Service, integrating with DGX Cloud Lepton to facilitate AI model training for researchers [3][10] Company Developments - NVIDIA collaborates with European venture capital firms to provide marketplace credits to startups, promoting regional development in AI [4][11] - The DGX Cloud Lepton platform simplifies access to GPU resources, supporting data governance and sovereign AI requirements [5][6] - The platform integrates with NVIDIA's software suite, streamlining AI application development and deployment [6][7] Industry Impact - The DGX Cloud Lepton marketplace aims to meet the growing demand for AI compute resources, with major cloud providers like AWS and Microsoft Azure participating [2][8] - Early-access customers include various AI companies leveraging the platform for strategic initiatives [8][9] - The integration with Hugging Face allows for scalable AI training, enhancing the capabilities of researchers in various scientific fields [10][11]

Core Viewpoint - NVIDIA continues to solidify its leadership in the AI sector with significant announcements at the Computex 2025 conference, particularly the launch of NVLink Fusion, which enhances its competitive edge over rivals [1][12]. Group 1: Technology and Product Developments - NVLink Fusion technology allows NVIDIA GPUs to connect with third-party CPUs and ASICs, expanding options for AI infrastructure and creating new revenue streams [2][3]. - The RTX Pro Server has entered volume production, offering performance improvements of approximately 2x to 4x compared to the original H100 AI GPU [4]. - Upcoming product launches include the GB300 systems and advancements in the Grace Blackwell product line, along with the introduction of DGX Cloud Lepton, a SaaS service for AI developers [5]. Group 2: Financial Outlook and Analyst Sentiment - Analysts anticipate strong Q1 2025 results for NVIDIA, with revenue estimates raised due to new projects, including a collaboration with Foxconn to build an AI supercomputer in Taiwan [7][9]. - The 12-month stock price forecast for NVIDIA is set at $164.84, indicating a potential upside of 22.71% based on 44 analyst ratings [8]. - Despite previous price target reductions, the consensus remains a Moderate Buy, with expectations of price target increases following the Computex announcements [10][11]. Group 3: Market Position and Future Projections - NVIDIA's leadership in the AI industry is expected to continue for several years, with the stock trading at lower multiples compared to historical levels, suggesting potential for significant gains [12]. - Projections indicate that if NVIDIA performs as expected, the stock could rise by 100% to 200% over the next decade, trading at 24x to 36x its 2035 forecast [13].