Applied Digital, CoreWeave, Iren All Surge After Nvidia Drops a Big Number on GPU Pricing

TLDR

• Nvidia’s H100 GPU rental prices are up 20% year-to-date, with A100 cloud pricing up nearly 15%, according to Nvidia CFO Colette Kress.
• Nebius is raising on-demand cloud prices by 29% and preemptible capacity prices by 51%, effective June 1.
• Nebius shares jumped around 15-17%, partly boosted by a fuel cell power deal with Bloom Energy.
• Applied Digital surged 17% after announcing a major long-term lease agreement.
• CoreWeave received a Buy rating and $162 price target from GF Securities, with shares up 4%.

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Nvidia’s quarterly earnings report showed that rental prices for its H100 GPUs continue to rise, pushing shares of several AI cloud and data center companies higher on Thursday.

NVIDIA Corporation, NVDA

Nvidia CFO Colette Kress said on the company’s earnings call that H100 rental prices are up 20% year-to-date, while A100 cloud pricing has risen nearly 15%. She said customers are generating profitable revenue beyond the expected life of their GPUs.

The disclosure sent shares of neocloud companies higher. Nebius rose around 15-17%, CoreWeave gained 4%, and Iren climbed more than 4% on the news.

Nebius Raising Cloud Prices on June 1

Nebius customers received emails this week informing them of upcoming price hikes. The company is raising its on-demand pay-as-you-go capacity prices by an average of 29%, and preemptible virtual machine capacity by 51%, effective June 1.

The price hike does not apply to existing customers. Nebius said in the email that the change reflects “continued strong demand for advanced GPU capacity.”

Nebius had previously set its on-demand H100 rental price at $3.85 per hour, up from $2.95 per hour.

The company also announced a separate partnership with Bloom Energy, where Bloom will install and operate fuel cell power systems at Nebius data centers. That deal added further momentum to the stock on Thursday.

Nebius has been expanding quickly. In March, it announced a $27 billion contract with Meta Platforms and a $2 billion investment from Nvidia. The company has also acquired Staryps, Eigen AI, and Tavily in recent months.

Applied Digital and CoreWeave Also Move Higher

Applied Digital shares jumped 17% on Thursday. The company announced a major long-term lease agreement, which added to the positive sentiment from Nvidia’s earnings.

CoreWeave gained 4% in premarket trading after GF Securities started coverage with a Buy rating and a $162 price target. Analyst Michelle Jing cited the company’s first-mover position in GPU deployment and long-term agreements with major AI cloud customers.

D.A. Davidson started coverage of both CoreWeave and Nebius with Neutral ratings earlier in the week.

Nvidia’s H100 was launched in April 2022. The company is currently in full production of its newer Blackwell GPU line, and its Vera Rubin line of AI accelerators is expected to launch in the second half of this year.

Nvidia’s strong earnings report also lifted broader sentiment across AI infrastructure stocks on Thursday.

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