Key Highlights
- Nvidia (NVDA) stock CFO revealed H100 GPU rental rates increased 20% year-to-date, while A100 cloud pricing climbed nearly 15%.
- Nebius plans to implement price increases of 29% for on-demand services and 51% for preemptible capacity starting June 1.
- Nebius stock rallied approximately 15-17%, supported by both pricing power and a new fuel cell partnership with Bloom Energy.
- Applied Digital stock soared 17% following the announcement of a significant long-term lease deal.
- GF Securities initiated coverage on CoreWeave with a Buy rating and $162 target, lifting shares 4%.
Thursday’s quarterly financial results from Nvidia (NVDA) stock revealed that demand for its flagship H100 graphics processing units remains robust, with rental rates continuing their upward trajectory and lifting multiple AI infrastructure and cloud computing stocks.
During Nvidia‘s quarterly earnings conference call, Chief Financial Officer Colette Kress disclosed that H100 rental rates have climbed 20% since the beginning of the year, while A100 cloud pricing has increased approximately 15%. Kress emphasized that clients are achieving profitable returns that extend well beyond the standard depreciation period of these GPUs.
“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 significant gains across next-generation cloud infrastructure companies. Nebius shares climbed between 15-17%, CoreWeave advanced 4%, and Iren increased more than 4% following the disclosure.
Nebius Implements Price Adjustments Beginning June 1
Nebius notified its customer base through email communications this week regarding forthcoming rate adjustments. The organization will increase on-demand pay-as-you-go capacity pricing by an average of 29%, while preemptible virtual machine capacity will see a 51% increase, both taking effect June 1.
Current customers under existing agreements will not face these price modifications. In its customer communication, Nebius attributed the adjustment to “continued strong demand for advanced GPU capacity.”
Nebius had already adjusted its on-demand H100 rental rate to $3.85 per hour from a previous $2.95 per hour.
Additionally, the company revealed a collaboration with Bloom Energy, under which Bloom will deploy and manage fuel cell power infrastructure at Nebius data center facilities. This partnership announcement provided additional upward momentum for the stock Thursday.
Nebius has been pursuing aggressive expansion. Earlier in March, the company secured a $27 billion agreement with Meta Platforms and received a $2 billion capital infusion from Nvidia (NVDA) stock. Recent months have also seen acquisitions including Staryps, Eigen AI, and Tavily.
Applied Digital and CoreWeave Experience Strong Gains
Applied Digital stock surged 17% Thursday after revealing a substantial long-term lease arrangement, which complemented the optimistic atmosphere generated by Nvidia’s earnings performance.
CoreWeave advanced 4% in premarket activity following GF Securities’ initiation of coverage with a Buy recommendation and $162 price objective. Analyst Michelle Jing highlighted the company’s early-mover advantage in GPU infrastructure deployment and its long-term contracts with prominent AI cloud providers.
“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 this week, D.A. Davidson initiated coverage on both CoreWeave and Nebius with Neutral recommendations.
Nvidia’s H100 processor made its market debut in April 2022. The semiconductor giant is currently ramping full-scale production of its next-generation Blackwell GPU architecture, while its Vera Rubin series of AI accelerators is scheduled for release during the latter half of this year.
Thursday’s strong earnings report from Nvidia (NVDA) stock also generated broader positive momentum throughout the AI infrastructure sector.
