Nvidia (NVDA) Hits Reset as Cloud Spending Slows
Nvidia (NVDA, Financials) is switching gears. With cloud giants like Microsoft (MSFT, Financials) and Google tightening the purse strings, Nvidias no longer betting only on mega AI builds.
Warning! GuruFocus has detected 3 Warning Sign with MSFT.
CEO Jensen Huang just rolled out NVLink Fusiontech that lets outside chips link up with Nvidias platform. Its a smart hedge: stay relevant, even when the big checks slow down.
Hes also targeting regular businesses now, not just tech titans. Think: new servers built for the rest of us.
Meanwhile, Chinas getting tougher. U.S. export limits mean Nvidia is selling weaker chips thereand losing ground.
Sure, Nvidia has closed some giant AI deals in the Gulf. But analysts say those are exceptions, not the norm.
Behind the scenes, Taiwans still doing the heavy lifting. Solomon Technology stock popped 241% after Huang gave it a shoutout. Thats how tight the partnership runs.
Huangs not sweating the slowdown. He says AI demand is still strongthis is just a breather.
Still, selling to businesses takes time. Its not the same as landing one massive government contract.
His stop in Taiwan for Computex? Its Nvidia doubling down on its alliesbecause geopolitics arent getting easier.
This article first appeared on GuruFocus.
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