By Rich Duprey
Publication Date: 2026-05-24 16:43:00
Quick Read
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Nvidia (NVDA) achieved its third straight earnings triple play by beating revenue estimates, topping earnings expectations, and raising forward guidance, driven by hyperscalers spending hundreds of billions on AI infrastructure; CFO Colette Kress revealed that rental prices for the company’s H100 GPUs rose 20% in 2026 while older A100 GPUs climbed 15%, signaling severe chip shortages across the entire AI compute stack including high-bandwidth memory from Micron Technology (MU), networking equipment from Broadcom (AVGO), and cooling systems.
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The AI infrastructure boom is rewriting semiconductor cycles because demand for computing power has accelerated so quickly that older chips are rising in price instead of depreciating, indicating the bottleneck is worsening as hyperscaler spending continues to outrun manufacturing capacity.
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The AI boom was supposed to follow a familiar technology cycle. More demand would spark more production, supply chains would catch up, and prices would gradually fall as hardware aged. That’s how semiconductors have behaved for decades. Yet AI infrastructure is rewriting those rules in real time.
Demand for computing power has accelerated so quickly that even older chips are rising in price instead of depreciating. And when a three-year-old graphics processor suddenly becomes more expensive, investors should pay attention….
