Nvidia’s H100 Rental Surge Defies Bearish Forecasts

Key Points

• Rental rates for the Nvidia H100 GPU have jumped 22% over the past month.

• Even as Nvidia introduces its next‑generation Rubin platform, demand for the older H100 remains robust, indicating strong market appetite.

• Despite recent analyst caution, Nvidia stock continues to trade below its intrinsic value, suggesting lingering bearish sentiment may be over‑wrought.

Nvidia (NASDAQ:NVDA) has built a track record of groundbreaking performance, yet the company still faces significant skepticism from investors. Even after a near‑doubling of revenue in its latest quarter, the stock trades at a price‑to‑earnings ratio of roughly 29, aligning it with the broader S&P 500. This valuation implies that the market expects earnings growth comparable to the overall index, despite Nvidia’s net income more than doubling in the most recent period and its guidance for sustained expansion through at least 2027.

Several factors have kept a lid on Nvidia’s premium valuation. First, the semiconductor industry is historically cyclical, and investors worry that the AI boom could wane, potentially turning Nvidia’s revenue and earnings growth negative as seen in prior cycles. Second, major customers such as hyperscalers are developing in‑house chips that could gradually replace Nvidia components, hinting at a possible erosion of its competitive edge. Third, some analysts, including Michael Burry, argue that rapid depreciation of Nvidia’s chips poses an outsized risk to both the company and the broader AI ecosystem. If chip values decline quickly, selling prices could suffer and the sustainability of AI deployments may be jeopardized.

Image source: Nvidia.

Jensen Huang weighs in

Comments and a chart shared on X (formerly Twitter) illustrate the average live cloud GPU rental cost based on the Ornn H100 SXM Index.

NVIDIA compute is fungible, durable and highly rentable. It is a productive, revenue-generating asset. https://t.co/cvmjaNoiK8

— Jensen Huang (@JensenHuang) September 8, 2026

The H100 is a three-year-old training chip. Its rental price is up 22 percent on the month, to $3.28 an hour.
Every depreciation schedule assumes a chip this old only loses value. The market is paying up for it instead. pic.twitter.com/TNSqgys3vx

— Ornn (@OrnnExchange) September 7, 2026

Image source: Ornn. Via X.

The H100 GPU, introduced almost four years ago, now commands a $3.28‑per‑hour rental price—a 22% month‑over‑month increase. This rise persists even as Nvidia rolls out its next‑generation Rubin (R100) platform, which will push the H100 into a second‑generation status. The R100 promises several times the memory and a newer architecture, yet the older chip’s rental value continues to climb.

Despite the availability of newer GPUs, even the preceding A100 generation remains in demand because it offers lower rental costs for budget‑conscious customers. Rather than cannibalizing its own sales, Nvidia appears to be leveraging a multi‑tiered pricing strategy that lets premium clients pay top rates for the latest silicon while more economical users opt for older, still‑capable hardware.

What it means for Nvidia

The resilience of H100 rental rates provides another data point that challenges the bearish narrative surrounding Nvidia. The chip’s enduring value suggests that demand for Nvidia’s hardware remains strong, even as newer options enter the market. Moreover, Nvidia has historically been undervalued by Wall Street, with analyst estimates repeatedly falling short of actual performance. The stock’s recent earnings surge, coupled with robust pricing for legacy GPUs, reinforces the case for continued leadership in AI chips and supports a buy‑rating outlook.

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