Morgan Stanley estimates GPU rental businesses can reach 70% incremental margins
firstadopter · x · 2026-07-28
Morgan Stanley says hyperscaler GPU rental businesses can be extremely profitable.
The cited estimate says these GPU rental operations can reach about 70% incremental margins and 30%+ ROIC. The accompanying chart assumes roughly 410k NVIDIA GB300 GPUs, 3.6bn total GPU hours, 75% utilization, and an $8.50/hour rental price.
Related event: GPU Rental Prices Surge, Cloud Profits Underestimated(8 posts)→
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