Key Highlights
- Rental rates for H100 chips jumped 22% within a month, reaching $3.28 hourly in September 2026
- CEO Jensen Huang described Nvidia computing power as “fungible, durable and highly rentable”
- Initial H100 rental pricing ranged from $7 to $8 per hour at launch
- The company achieved record quarterly sales of $96.2 billion in August 2026, representing 106% annual growth
- Analyst consensus shows 29 Strong Buy ratings with a $325.23 average target price for NVDA
Shares of Nvidia (NVDA) began trading Tuesday at $230.36, marking a 0.84% increase as Chief Executive Jensen Huang renewed his argument for the enduring value proposition of the company’s previous-generation chips.
During recent remarks, Huang emphasized that “NVIDIA compute is fungible, durable and highly rentable. It is a productive, revenue-generating asset.” His comments followed data showing a 22% month-over-month increase in H100 chip hourly rental costs.
By September 2026, H100 rental pricing reached $3.28 hourly. The three-year-old processor, which served as the backbone for early artificial intelligence applications, continues to see widespread deployment across the industry.
However, historical perspective adds nuance to this narrative. At launch, on-demand H100 rentals commanded between $7 and $8 hourly at leading cloud platforms. The current uptick represents a rebound rather than breaking new ground.
Factors Driving Rental Cost Increases
Allocation of newer Nvidia Blackwell processors to major enterprise clients has created demand pressure on available H100 infrastructure for standard AI operations.
Data center constraints related to power capacity and memory availability have contributed significantly to sustained elevated rental pricing. These supply-side factors play a substantial role in current market dynamics.
Cloud infrastructure provider CoreWeave (CRWV) reported $35 billion in outstanding debt by June 2026. Additionally, Nvidia has established agreements to lease back idle computing capacity from partner networks, which detractors suggest artificially inflates quarterly revenue numbers.
Prominent short sellers, including Michael Burry, contend that actual chip useful lifespans fall short of official company projections. While Nvidia applies depreciation schedules of five to six years for its processors, critics maintain this timeframe overestimates practical longevity.
Financial Performance and Market Outlook
The chipmaker disclosed $96.22 billion in quarterly revenue, representing 105.9% year-over-year expansion. Diluted earnings per share reached $2.22, surpassing Wall Street’s consensus forecast of $2.09.
Following the August 2026 earnings announcement, NVDA shares surged more than 4% in subsequent trading.
Company leadership also greenlit an $80 billion share repurchase authorization, while a $0.25 quarterly dividend payment is scheduled for October 1, 2026 distribution.
Institutional holdings remain robust. Webster Bank N.A. maintains 206,799 Nvidia shares worth approximately $41.38 million, representing the bank’s sixth-largest equity position, despite reducing its stake by 3.3% during Q2.
The company is also moving forward with a proposed $12.93 billion acquisition of Hugging Face, which market analysts suggest could strengthen its strategic positioning in AI software infrastructure.
According to TipRanks, all 29 covering analysts assign NVDA a Strong Buy rating with complete unanimity. Their collective 12-month price target averages $325.23, suggesting approximately 41% potential upside from present valuation.
In separate analyst activity, KGI Securities increased its Nvidia valuation target from $335 to $345 on August 27, 2026. BMO Capital Markets maintains a $340 price objective alongside an outperform recommendation.
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