Nvidia Pulls Back on Cloud Push Against AWS?

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%.

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Nvidia Pulls Back on Cloud Push Against AWS?

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