Key Takeaways
- Nvidia CFO Colette Kress revealed H100 GPU rental rates have increased 20% year-to-date, while A100 cloud pricing has risen approximately 15%.
- Nebius plans to implement price increases of 29% for on-demand cloud services and 51% for preemptible capacity, starting June 1.
- Nebius stock rallied 15-17%, bolstered by both pricing news and a new fuel cell power partnership with Bloom Energy.
- Applied Digital saw shares spike 17% following the announcement of a significant long-term lease deal.
- CoreWeave stock rose 4% after GF Securities initiated coverage with a Buy rating and $162 price target.
During its latest quarterly earnings report, Nvidia disclosed continued upward momentum in rental pricing for its flagship H100 GPUs, triggering a rally across multiple AI cloud infrastructure and data center stocks on Thursday.
During the earnings call, Nvidia CFO Colette Kress disclosed that H100 rental prices have climbed 20% since the start of the year, with A100 cloud pricing experiencing a nearly 15% increase. She emphasized that clients are achieving profitable returns that extend well beyond the anticipated depreciation period of their GPU investments.
“Benefiting from the versatility of our platform and continuous performance enhancements enhanced by our software stack, customers are generating profitable revenue beyond the depreciable life of their GPUs,” Kress said.
The announcement triggered immediate gains among neocloud providers. Nebius shares surged between 15-17%, CoreWeave advanced 4%, and Iren posted gains exceeding 4% during Thursday’s trading session.
Nebius Implements Substantial Price Increases Starting June 1
Nebius notified its customer base via email this week regarding forthcoming price adjustments. The company will increase on-demand pay-as-you-go capacity pricing by an average of 29%, while preemptible virtual machine capacity will see a 51% hike, both taking effect June 1.
Current customers will be exempt from these price increases. In the notification, Nebius attributed the adjustment to “continued strong demand for advanced GPU capacity.”
Nebius previously adjusted its on-demand H100 rental rate to $3.85 per hour from the earlier $2.95 per hour.
Additionally, the company unveiled a strategic partnership with Bloom Energy, whereby Bloom will deploy and manage fuel cell power infrastructure at Nebius data center facilities. This announcement provided additional upward momentum for the stock Thursday.
Nebius has pursued aggressive expansion recently. Earlier this year in March, the company secured a $27 billion agreement with Meta Platforms and received a $2 billion investment from Nvidia. The firm has also completed acquisitions of Staryps, Eigen AI, and Tavily over recent months.
Applied Digital and CoreWeave Experience Strong Gains
Applied Digital stock surged 17% Thursday. The company’s announcement of a substantial long-term lease agreement complemented the positive market sentiment generated by Nvidia’s earnings disclosure.
CoreWeave climbed 4% in premarket trading following GF Securities’ initiation of coverage with a Buy recommendation and $162 price objective. Analyst Michelle Jing highlighted the company’s leadership position in GPU infrastructure deployment and its strategic long-term agreements with prominent AI cloud platforms.
“Backed by first-mover GPU deployment, exclusive AI-only focus, best-in-class efficiency, and LTAs with major AI hyperscalers, CoreWeave is positioned as a long-term winner in the AI infra boom,” Jing wrote.
Earlier in the week, D.A. Davidson initiated coverage of both CoreWeave and Nebius with Neutral ratings.
Nvidia introduced the H100 in April 2022. The chipmaker is currently ramping full-scale production of its next-generation Blackwell GPU series, while its Vera Rubin AI accelerator lineup is scheduled for release during the second half of this year.
Nvidia’s robust quarterly results contributed to broader positive sentiment throughout the AI infrastructure sector on Thursday.
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