Nvidia Defies Skeptics with Strong Demand for Older Chips

Nvidia's stock has been growing in value despite investor skepticism about its future. The company's revenue nearly doubled in its most recent quarter, but its price-to-earnings ratio is only 29, similar to the S&P 500.

One of the main concerns about Nvidia is that it will lose its competitive advantage as competitors build their own chips. However, data on cloud GPU rental costs shows that prices for Nvidia's older H100 chip are still strong, up 22% in the last month.

This is significant because Nvidia has just launched a new platform called Rubin, which makes the H100 two generations old. Despite this, customers are still willing to pay premium prices for the newer chips, while budget-conscious buyers can opt for older models at lower costs.