CoreWeave: Older GPUs Are Getting More Expensive, Not Cheaper
$CRWV's Q3 call revealed a surprising pricing trend.
Rental prices for its Ampere and Hopper GPUs rose 30–50% QoQ, according to management, exceeding their original contract rates.
More than 130,000 GPUs come off contract in 2027, with another ~170,000 in 2028.
At current prices, management estimates nearly $10B in potential annualized renewal revenue across those cohorts, without additional GPU capex.
That is not contracted revenue. And today's rental rates may not persist.
But it raises an important question.
GPU performance depreciates relative to newer architectures. Its rental economics don't necessarily follow the same curve.
When deployed compute is scarce, older GPUs can gain pricing power even as newer generations become more efficient.
For CoreWeave, that could extend the cash-generating life of existing assets.
For NVIDIA, renewal revenue from older GPUs is not automatically new hardware demand.
The next test: whether Ampere and Hopper rental rates hold as new capacity comes online.
#stock
$CRWV $NVDA.US
$CRWV's Q3 call revealed a surprising pricing trend.
Rental prices for its Ampere and Hopper GPUs rose 30–50% QoQ, according to management, exceeding their original contract rates.
More than 130,000 GPUs come off contract in 2027, with another ~170,000 in 2028.
At current prices, management estimates nearly $10B in potential annualized renewal revenue across those cohorts, without additional GPU capex.
That is not contracted revenue. And today's rental rates may not persist.
But it raises an important question.
GPU performance depreciates relative to newer architectures. Its rental economics don't necessarily follow the same curve.
When deployed compute is scarce, older GPUs can gain pricing power even as newer generations become more efficient.
For CoreWeave, that could extend the cash-generating life of existing assets.
For NVIDIA, renewal revenue from older GPUs is not automatically new hardware demand.
The next test: whether Ampere and Hopper rental rates hold as new capacity comes online.
#stock
$CRWV $NVDA.US