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Investing.com -- Bernstein says concerns about whether GPUs can realistically operate for six to seven years are overstated, given major cloud providers been broadly accurate in how they depreciate accelerated compute.
The brokerage says cash operating costs on older GPUs remain far below prevailing rental prices, allowing vendors to earn solid margins even on hardware that is five years old.
Its analysis shows GPUs tend to lose more value in the first year, often due to burn-in losses and a shift in high-performance workloads to newer chips.
But after that initial drop, resale values stabilise and many units remain in use for lower intensity tasks. That supports a five to six year useful life, in line with current accounting practices.
Long-term contracts can also shift depreciation risk to customers if hardware values fall faster than expected.
Despite fears that longer GPU life reduces replacement demand, the firm says overwhelming compute needs are keeping older units online, and that accelerated compute still does not behave like a commodity.
The brokerage concludes that depreciation debates are less material than bears suggest, with current assumptions appearing reasonable given industry economics.