Nvidia Corp (NASDAQ: NVDA) CEO Jensen Huang stated on Wednesday that the company's older A100 GPUs can remain economically useful for nearly a decade, pushing back against concerns that rapid AI advances could quickly render the hardware obsolete.

Huang said on X that the A100 fleet is "mission-capable from 2020 through 2029." He highlighted the longevity of Nvidia's data center GPUs, noting that the A100 debuted in 2020 as part of the Ampere generation. Huang attributed this durability to the company's CUDA software platform, which he said makes computing versatile and fungible, thereby driving utilization.

CoreWeave Deal Challenges Obsolescence Fears

Huang's comments followed a disclosure from AI cloud provider CoreWeave Inc (NASDAQ: CRWV). The company signed a contract to rent Nvidia A100 GPUs through 2029. CoreWeave CFO Nitin Agrawal described the deal price as attractive. This arrangement means the 2020-era chips could generate revenue nearly nine years after launch, despite several newer GPU generations entering the market.

This development challenges a key concern among AI infrastructure bears that accelerating chip improvements could cause older GPUs to lose economic value within two or three years. Older GPUs can remain useful by shifting from demanding AI workloads to inference and smaller models, according to a Business Insider report cited by Huang.

What the Numbers Show

Rental-market data supports the assessment of GPU longevity. Silicon Data, which tracks GPU rental prices, reported that A100 rates have remained resilient following a strong rebound in 2026. Silicon Data noted that based on residual fair value estimates, A100 stopped depreciating since late 2025 as rising rental rates stabilized cash flows. This suggests GPUs are increasingly viewed as financeable capital assets with stable income streams rather than rapidly depreciating hardware.

Capital Mobilization Partnerships

The implication of longer GPU utility aligns with Nvidia's strategy to promote its chips as revenue-generating assets. On Monday, Nvidia announced partnerships with Apollo Global Management (NYSE: APO), BlackRock Inc (NYSE: BLK), Blackstone Inc (NYSE: BX), Brookfield Asset Management (NYSE: BAM), Goldman Sachs (NYSE: GS) and KKR & Co Inc (NYSE: KKR). These partnerships aim to help mobilize more than $500 billion in capital over time.

Nvidia closed at $224.09, up 3.03% on Wednesday. Shares were down 0.09% to $223.90 in Thursday's premarket trading.

Nvidia Corp (NASDAQ: NVDA) shares advanced 2.66% to $223.21 on Wednesday, driven by investor anticipation surrounding the company’s upcoming quarterly earnings report. The gain occurred against a backdrop of rising S&P 500 futures, which added 0.3%, reinforcing risk appetite for mega-cap technology stocks.

The market focus remains fixed on Nvidia’s earnings release confirmed for August 26, 2026. Analyst consensus estimates project significant year-over-year growth, with revenue expected to reach $91.82 billion, up from $46.74 billion in the prior year period. Earnings per share are forecast at $2.07, compared to $1.04 previously. At current levels, the stock trades at a price-to-earnings multiple of 33.3x, reflecting a premium valuation relative to peers.

AI Infrastructure Demand Supports Chip Stocks

Broader industry activity continues to underscore robust demand for artificial intelligence hardware. Intel Corp (NASDAQ: INTC) recently expanded its equity offering to $20 billion, expecting net proceeds of approximately $19.7 billion. Intel stated it intends to use these funds for general corporate purposes, including working capital and capital expenditures, with 2026 capital spending projected to exceed $20 billion.

Simultaneously, CoreWeave Inc (NASDAQ: CRWV) and Super Micro Computer Inc (NASDAQ: SMCI) reported strong backlogs and continued data-center spending. These developments reinforce the heavy investment in AI hardware by major cloud and technology companies, which directly supports demand for Nvidia’s chips.

Analyst Outlook & ETF Exposure

Analyst sentiment remains bullish, with a consensus Buy rating and an average price forecast of $325.74. Recent analyst actions include:

• Wells Fargo: Maintained Overweight rating with a $315.00 forecast (August 11).
• KeyBanc: Raised forecast to $330.00 while maintaining Overweight rating (July 14).
• China Renaissance: Initiated coverage with a Buy rating and $319.00 forecast (June 5).

Nvidia’s significant weighting in major exchange-traded funds amplifies its exposure to institutional flows. Key ETF holdings include:

Given these high concentrations, any substantial inflows or outflows from these funds will likely trigger automatic buying or selling pressure on Nvidia shares.

What the Numbers Show

The divergence between the projected revenue growth and the current valuation metric warrants attention. While analysts estimate revenue to nearly double year-over-year (from $46.74 billion to $91.82 billion), the implied P/E ratio of 33.3x suggests the market has already priced in a significant portion of this growth. This premium valuation indicates that investors are placing high confidence in the sustainability of AI infrastructure spending, as evidenced by concurrent capital expenditure announcements from peers like Intel.