Key Highlights
- Rental costs for Nvidia’s H100 GPUs have climbed 20% since the beginning of the year, while A100 cloud rates increased nearly 15%, per CFO Colette Kress.
- Starting June 1, Nebius will implement a 29% increase for on-demand cloud services and a 51% hike for preemptible capacity rates.
- Nebius stock soared approximately 15-17%, with additional support from a power partnership agreement with Bloom Energy.
- Applied Digital shares rocketed 17% higher following the unveiling of a significant long-term lease arrangement.
- GF Securities initiated coverage on CoreWeave with a Buy recommendation and $162 target, contributing to a 4% share gain.
The latest quarterly financial results from Nvidia revealed continued upward momentum in rental rates for its H100 graphics processing units, triggering a rally across multiple AI cloud infrastructure and data center stocks during Thursday’s trading session.
During Nvidia‘s earnings conference call, Chief Financial Officer Colette Kress disclosed that H100 rental rates have appreciated 20% year-to-date, accompanied by a nearly 15% increase in A100 cloud pricing. 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 substantial gains among neocloud providers. Nebius stock advanced approximately 15-17%, while CoreWeave registered a 4% increase, and Iren posted gains exceeding 4% following the disclosure.
Nebius Implementing Major Price Adjustments Next Month
Earlier this week, Nebius notified its customer base via email regarding forthcoming rate adjustments. The company plans to 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 clients will remain exempt from these increases. In its communication, Nebius attributed the pricing adjustment to “continued strong demand for advanced GPU capacity.”
Previously, Nebius had adjusted its on-demand H100 rental rate to $3.85 hourly, representing an increase from the earlier $2.95 per hour rate.
Additionally, the company unveiled a collaborative agreement with Bloom Energy, under which Bloom will deploy and manage fuel cell power infrastructure at Nebius data center facilities. This announcement provided additional upward momentum for the stock during Thursday’s session.
Nebius has pursued aggressive expansion initiatives. Earlier this year in March, the company secured a $27 billion agreement with Meta Platforms alongside a $2 billion capital injection from Nvidia. Recent months have also seen Nebius complete acquisitions of Staryps, Eigen AI, and Tavily.
Applied Digital and CoreWeave Experience Strong Gains
Applied Digital stock surged 17% during Thursday’s trading. The company’s announcement of a substantial long-term lease contract complemented the optimistic market sentiment stemming from Nvidia’s financial results.
CoreWeave registered a 4% increase in premarket activity after GF Securities launched coverage with a Buy designation and established a $162 price objective. Analyst Michelle Jing highlighted the company’s pioneering position in GPU infrastructure deployment and its established long-term contracts with prominent AI cloud service 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 in the week, D.A. Davidson initiated coverage on both CoreWeave and Nebius, assigning Neutral ratings to each company.
Nvidia originally introduced the H100 in April 2022. The chipmaker has now entered full-scale production of its next-generation Blackwell GPU architecture, with the Vera Rubin series of AI accelerators scheduled for market introduction during the latter half of this year.
Nvidia’s robust quarterly performance also generated positive momentum throughout the broader AI infrastructure sector on Thursday.
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