The 4090 I bought in '23 is selling for ~3x what I paid for it now in late '26. There's a huge squeeze going on with computer hardware using relatively cheap borrowed money. Relatively cheap money is flowing into a (artificially?) limited GPU/memory asset class. And this asset class is growing much faster in value than the interest on that money. So if you borrowed heavily to buy GPUs in the prior 3 years, you're likely coming out well ahead even if you are paying 8 to 10% on the money.
That dynamic will fuel further borrowing until we get to some kind of equilibrium, or some kind of washout occurs where interest rates spike higher and/or the value of GPUs and GPU services start leveling off or even declining. We might get a test soon as the FED has started hiking.
That dynamic will fuel further borrowing until we get to some kind of equilibrium, or some kind of washout occurs where interest rates spike higher and/or the value of GPUs and GPU services start leveling off or even declining. We might get a test soon as the FED has started hiking.