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When a piece of equipment keeps its market price after years of use, lenders call that residual value, and it is what separates an asset worth financing from an expensive liability.
Wall Street's biggest private capital firms are betting Nvidia's artificial intelligence chips have it. If they are right, computing hardware enters a class of financeable infrastructure it has never occupied before.
Why computing hardware has never fit that class Depreciation is the decline in an asset's market price over time. For computing equipment, the decline has historically been steep.
Faster machines arrive in predictable cycles. Each new generation makes older hardware less competitive and, eventually, a cost burden rather than a working asset.
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