Key HighlightsMonthly rental costs for H100 chips surged 22% to reach $3.28 per hour by September 2026CEO Jensen Huang described Nvidia’s computing infrastructure as “fungible, durable and highly rentable”Initial H100 rental pricing ranged between $7 and $8 per hour at launchThe company delivered unprecedented quarterly sales of $96.2 billion in August 2026, representing 106% growth year-over-yearWall Street consensus shows 29 analysts with Strong Buy ratings and a $325.23 average target priceShares of Nvidia (NVDA) kicked off Tuesday’s trading session at $230.36, climbing 0.84% as Chief Executive Jensen Huang reinforced confidence in the enduring profitability of the company’s legacy chip architecture.NVIDIA Corporation, NVDADuring his remarks, Huang emphasized that “NVIDIA compute is fungible, durable and highly rentable. It is a productive, revenue-generating asset.” His comments referenced the significant 22% monthly increase in H100 chip hourly rental pricing.By September 2026, the cost to rent the three-year-old H100 processor reached $3.28 hourly. This chip served as the backbone for initial artificial intelligence applications and continues to support substantial workloads across the industry.However, historical perspective matters here. Upon its initial market debut, the H100 commanded on-demand rates ranging from $7 to $8 per hour at leading cloud service providers. The current uptick represents a rebound rather than an all-time peak.Market Dynamics Behind Price IncreasesThe latest generation of Nvidia Blackwell processors is being reserved primarily for major corporate customers, forcing legacy H100 infrastructure to absorb routine AI processing demands.Constrained power capacity and memory availability throughout data center facilities continue to support elevated rental pricing. These supply limitations are playing a significant role in maintaining current rate levels.Cloud infrastructure provider CoreWeave (CRWV) reported carrying $35 billion in outstanding debt as of June 2026. Additionally, Nvidia has entered agreements to lease back idle computing resources from collaborative networks, a practice some critics suggest inflates reported quarterly earnings.Bearish investors, including notable short seller Michael Burry, contend that actual hardware longevity falls short of company projections. While Nvidia applies depreciation schedules spanning five to six years, skeptics maintain this timeframe overstates practical chip lifespans.Financial Performance and Market SentimentThe semiconductor giant posted $96.22 billion in quarterly revenue, reflecting 105.9% annual growth. Per-share earnings reached $2.22, surpassing Wall Street’s consensus forecast of $2.09.Following the impressive earnings announcement in August 2026, NVDA stock surged over 4% in trading activity.Company leadership also greenlit an $80 billion share repurchase initiative, while a $0.25 per share quarterly dividend is scheduled for distribution on October 1, 2026.Institutional ownership remains robust. Webster Bank N.A. maintains a position of 206,799 Nvidia shares with an approximate value of $41.38 million, representing its sixth-largest holding, despite reducing exposure by 3.3% during the second quarter.The company is also advancing toward a proposed $12.93 billion acquisition of Hugging Face, which market observers believe could strengthen its competitive standing within the AI software ecosystem.According to TipRanks data, all 29 covering analysts maintain Strong Buy recommendations for NVDA. The consensus 12-month price objective stands at $325.23, suggesting potential appreciation of approximately 41% from present trading levels.In separate analyst activity, KGI Securities increased its Nvidia valuation from $335 to $345 on August 27, 2026. BMO Capital Markets maintains a $340 price target alongside an outperform rating.The post Nvidia (NVDA) Stock Climbs as CEO Jensen Huang Defends H100 Chip Profitability appeared first on Blockonomi.