The cost to rent Nvidia’s H200 GPUs has dropped significantly, falling around 40% in just three weeks – from $7 to about $4 per hour. This price decrease is raising questions about how limited AI computing power truly is and is creating some short-term concerns for Nvidia’s stock.
Nvidia (NVDA) finished trading at $214.25 on May 28th, just before the release of new data on computing costs. Declining prices for older generation Hopper chips are causing investors to question how long the strong demand from large cloud providers will last.
Older Silicon Weighs on the Nvidia Bull Case
The recent price decrease of the H200 graphics card signals Nvidia transitioning to its next generation of technology. As the supply of the older Hopper chips becomes more readily available in data centers, the newer, more powerful Blackwell B200 and GB200 chips are being sold at higher prices, according to Ornn.
Recent declines in the performance of older graphics processing units (GPUs) are creating concerns for investors in companies whose stock prices are based on the idea of limited supply, especially following Nvidia’s strong earnings report.
As a researcher tracking GPU pricing, I’ve observed a significant shift in the market recently. Just three weeks ago, renting an Nvidia H200 GPU cost around $7 per hour. Now, that price has dropped to just $4 per hour – a 40% decrease. Analyst Thierry Borgeat at Arvy points out that this is particularly noteworthy because the H200 is a crucial component in many advanced tech applications.
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Analysts Stay Constructive on NVDA
Despite recent market conditions, Wall Street analysts remain optimistic. Dan Ives at Wedbush maintains a ‘buy’ rating and a $300 price target for the stock, pointing to significant investment in Artificial Intelligence. The average price target from 43 analysts is around $304, suggesting the stock could potentially increase in value by 43%.
Customer choices will likely have the biggest impact on AI investment returns. A recent Financial Times study estimated that Microsoft and Meta could see negative returns on their AI investments between 2025 and 2030, at -9.2% and -28.8% respectively.
The math is fueling fresh AI bubble fears as hyperscaler free cash flow tightens.
Nvidia delivered $81.6 billion in revenue last quarter on 85% growth.
Although the H200 reset doesn’t completely disprove the existing argument, it gives those predicting falling prices a new reason to believe their forecast as we approach the next earnings reports.
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2026-05-29 17:21