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.
More from Infra
- Microsoft open-sources MarkItDown, a Python tool for turning documents into Markdown — mdancho84 · 2026-07-28
- Microsoft releases MarkItDown, an open-source document-to-Markdown converter — mdancho84 · 2026-07-28
- Screenshot shows Anthropic crawl spikes as users speculate Sonnet 6 training is underway — marclou · 2026-07-28
- NVIDIA says Jetson now fits in a bag while powering robots and edge AI — nordicinst · 2026-07-28
- India can assemble a finished chip in Gujarat, but the core is still imported — santoshpanda · 2026-07-28
- Open competition targets 36.8% faster Laguna XS 2.1 inference on consumer Macs — gajesh · 2026-07-28