Say goodbye to "hash power depreciation" anxiety! New cloud vendors’ older generation GPUs are expected to operate until 2029. BofA Securities maintains "Buy" ratings on CoreWeave (CRWV.US) and Nebius (NBIS.US).

According to Jinse Finance APP, Bank of America Securities stated that the recently released financial reports of CoreWeave (CRWV.US) and Nebius (NBIS.US) indicate that the emerging Neocloud industry is benefiting from "increasingly favorable pricing dynamics." The bank maintains a "Buy" rating on both CoreWeave and Nebius, with target prices of $140 and $310, respectively.

The Bank of America analyst team led by Thiel Liani said in an investor report on Monday: "Both companies highlighted strong demand from hyperscale clients, AI labs, and enterprises, with demand consistently outpacing the current supply of GPUs. The solid returns from early inference deployments are supporting increased client spending, while the prices for next-generation GPUs continue to rise. Importantly, despite a succession of new products, prices of previous-generation GPUs have remained resilient, indicating limited short-term pricing pressure. Additionally, unlike traditional five-year contracts, available computing power capacity is increasingly being contracted at a premium, reflecting the urgency of current demand."

Bank of America stated that these trends may drive operating profit margin expansion by 500 to 1,000 basis points.

Emerging cloud service providers have also demonstrated that older GPU assets may possess much longer economic lifespans than previously expected. For example, CoreWeave's NVIDIA (NVDA.US) A100 computing cluster has contracts in place until 2029, which means its lifecycle extends to at least nine years.

Liani noted: "As asset lifespans are extended, operators can monetize their hardware over a longer period while continuing to benefit from sustained demand for earlier-generation computing power, which strengthens market confidence in the long-term value proposition of both current and future GPU deployments."

Finally, capacity expansion plans are proceeding as scheduled. CoreWeave aims to achieve 8 gigawatts (GW) of computing capacity by 2030, while Nebius plans to deploy over 1 GW annually starting in 2027.

Liani added: "We believe these expansion targets reflect a high degree of confidence in the durability of AI infrastructure demand and reinforce the view that power supply and execution remain the core drivers of growth."