Nvidia is building its cloud specifically designed for artificial intelligence, potentially shaking up the market currently dominated by FAANG. This move could impact Nvidia's stock price as well as those of its cloud-computing competitors.

Nvidia, a leading chipmaker, is significantly expanding its data center footprint, hinting at a potential entry into the cloud computing market. This shift, marked by a substantial increase in data center leasing activity, including a major deal with Digital Realty, suggests Nvidia aims to build its own "AI cloud" – a platform leveraging its powerful AI chips and software.

This move could disrupt the existing cloud landscape dominated by giants like Amazon, Microsoft, and Google. While these companies have been the primary drivers of data center demand, Nvidia's aggressive expansion signals a new contender. The emergence of "neoclouds," specialized cloud providers focusing on AI workloads, further supports this trend. Nvidia, with its investments in companies like CoreWeave and its advanced AI chips, is well-positioned to capitalize on this growing market segment.

This strategic shift has already impacted Nvidia's stock price, which surged significantly in 2024 and saw further gains following the news of its increased data center leasing. As the AI revolution accelerates, Nvidia's foray into cloud computing could reshape the competitive landscape and redefine the future of cloud services.

Nvidia's stock price experienced a significant surge today, rising 4.8% to $151.40 during midday trading. This impressive performance builds upon the stock's remarkable 171% growth throughout 2024. Anticipation for the upcoming CES technology show has fueled Nvidia's stock rally in early 2025. A notable 5.4% jump last week signaled strong bullish momentum. This gain decisively broke through the 50-day moving average, surpassed a key trend line, and exceeded the previous high of $141.90 set on December 24th. These technical indicators strongly suggest a buy signal for Nvidia's stock.