Nvidia (NVDA.US) is set to scale back its efforts to develop the DGX Cloud service, which was intended to compete with Amazon Web Services. According to reports by The Information, the company is reducing its focus on acquiring business customers for this project. This information reduces the potential competitive pressure on AWS, which remains the leader in the cloud infrastructure market. For investors, this means that Amazon's (AMZN.US) position in the cloud services segment is becoming even stronger. As a result, Amazon's shares may gain as the market interprets Nvidia's weakening efforts as a benefit to the main player in this sector.
Amazon shares are up 0.5% before the market opens. At the same time, Nvidia is up 0.1%.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
