Chipmaker Nvidia (NVDA) is seeing a surge in demand for its H100 GPUs. In fact, rental prices have jumped by nearly 40% to about $2.35 per hour from $1.70 last October, according to SemiAnalysis. The data, based on surveys from over 100 industry participants, shows that GPU capacity is effectively sold out across the board. In many cases, companies that secured access earlier are holding onto it, even as prices rise. As a result, finding available GPUs has become increasingly difficult, with some buyers even competing for much higher-priced spot instances on platforms like AWS (AMZN).
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Forget margin or options. Here's how the pros trade AMZNAnd this tight supply is not limited to older chips. Nvidia’s newer Blackwell GPUs are also in short supply, with lead times now stretching into mid-2026 due to strong demand. Interestingly, expectations had been that newer, more efficient chips would push down prices for older models like H100. However, the opposite has happened, as demand has remained strong or even increased. This is being driven by the rising use of AI applications, especially for media-generation tools from companies like ByteDance and Google (GOOGL), as well as the growing adoption of models like Anthropic’s Claude.
Looking ahead, researchers say that several factors will determine whether prices stay high. These include how quickly new GPU capacity comes online, whether chip shortages continue, and how fast AI demand keeps growing. However, despite these strong fundamentals, market sentiment has turned negative on companies like CoreWeave (CRWV), Nebius (NBIS), and IREN (IREN), with their stock prices near recent lows. This suggests that there is a disconnect between real-world demand and investor expectations, as many still believe supply will eventually catch up.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 41 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average Nvidia price target of $273.57 per share implies 54.6% upside potential.
