GPU Prices: H100 Resellers Raking in Over 3X Profits on Popular Online Marketplaces

The demand for graphics processing units continues to be high. Recent observations reveal the prices and lucrative gains made by resellers. The H100 series is particularly sought after, enabling resellers to capitalize on market dynamics and generate profits. As per Stocklytics.com data, resellers of the H100 GPUs are earning profits 3X the market price. 

Edith Reads, a financial analyst from Stocklytics, commented:

The emergence of scalping bots, sophisticated software programs designed to purchase limited-stock items online automatically, tilts the scales in favor of resellers, leaving genuine consumers empty-handed.

Stocklytics Financial Analyst, Edith Reads

H100 Guarantees Returns

The scarcity of H100 GPUs relative to their demand has led to increased prices. Some sellers have exploited this shortage to maximize their profits at buyers’ expense. While it costs an estimated $3,320 to produce an H100 GPU, they are sold on average for $30,000.

Recent data shows that eBay listings are reaching $45,000. Moreover, the highest completed sale price hit a remarkable $97,835. These numbers clearly indicate that most H100 GPU resellers are making profits three times higher than the manufacturer’s suggested prices on prominent platforms.

The profitability of the H100 GPU industry does not just benefit the resellers but the manufacturers who, in the process, make over 1000% margins. In the year ending January 2024, Nvidia generated a revenue of $47.5 billion from this sector. This marked a threefold increase compared to the previous year. A significant portion of Nvidia’s income comes from selling data center chips, with their non-GAAP gross margin reaching 73.8% in the year following the introduction of H100 chips. Considering this data, it could be time to explore investment opportunities at Nvidia.

Affordability is Around the Corner

The persistent supply shortage is being actively addressed, reducing waiting times from 8-11 months to a mere 3-4 months. Consequently, companies that had stockpiled significant quantities of H100 processors are now beginning to resell them.

The market dynamics have evolved, with entities like Amazon, Google Cloud, and Microsoft offering these GPUs for lease at affordable rates. However, due to ongoing supply constraints, there have been limited breakthroughs for companies striving to develop their expansive language models.

Looking ahead, there’s a pressing need to regulate the prices of such items in the market to ensure fairness for all stakeholders.