CloudFormation cross-stack vs nested-stack

You should use cross-stack references as it was created for your use case of passing between stacks.

Whereas nested stacks would work, it’s primary purpose is for reuse of modular components, like a template of a resource you use in lots of stacks to save copy pasting and updating the stacks independently.

Nested stacks: if you need to manage your stacks from a single point, you should use nested stacks. example: assume that you have load balancer configuration that you use for most of your stacks. Instead of copying and pasting the same configurations into your templates you can create a dedicated template for load balancer.

cross-stack : Alternatively, if you need to manage your stacks as separate entities, you should use cross-stack references.(AWS limits the number of VPCs you can create in an AWS region to five.) example : You might have a network stack that includes a VPC, a security group, and a subnet. You want all public web apps to use these resources. By exporting the resources, you allow all stacks with public web applications to use them.