Shares of Nvidia are down 5.4% today and the Nasdaq is down 3%.

One of the drivers is a Wells Fargo note that’s doing the rounds that suggests AWS is slowing data center deals.

he financial giant reports that “industry sources” indicate Amazon’s cloud division has paused portions of its colocation leasing discussions, with international locations particularly affected. The exact scope remains unclear, but it represents a potentially significant shift in the hyperscale data center market.

This follows similar moves by Microsoft, suggesting the two largest cloud providers are simultaneously entering a digestion phase after aggressive expansion.

• AWS reportedly not cancelling signed deals
• Simply pulling back from pipeline of LOIs (Letters of Intent) and SOQs
• Follows Microsoft’s recent similar pullback
• Could signal moderating data center demand from hyperscalers

The timing raises questions about cloud expansion as it looks like we’re in a classic ‘cooling off’ period following a tech boom.

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