Nvidia to raise $25 billion in first corporate bond sale in five years

NEW YORK: Nvidia will raise $25 billion through a US corporate bond offering, marking its first return to the investment-grade debt market in five years as the company seeks to strengthen liquidity and establish a benchmark for its borrowing costs.

The artificial intelligence chipmaker had initially planned to raise $20 billion but expanded the offering after investor demand reached around $85 billion, according to a source familiar with the transaction.

The bond sale comprises seven tranches of notes, with the longest-dated securities maturing in 2056, according to a term sheet.

Demand came mainly from domestic investors, while the offering surprised parts of the market because Nvidia had provided little advance indication of its plans.

The company last entered the investment-grade bond market in June 2021, when it raised $5 billion.

Nvidia said the proceeds would be used for general corporate purposes, including repaying and refinancing outstanding notes.

However, a source said the primary objective was to establish a liquid benchmark for the company’s cost of credit rather than finance capital expenditure.

Nvidia capped the offering at $25 billion to maintain lower credit spreads, distinguishing its approach from technology companies raising debt to fund large-scale artificial intelligence infrastructure.

Major technology companies are expected to spend more than $700 billion on artificial intelligence this year, up from around $400 billion in 2025.

Meta filed for a bond offering of up to $30 billion in October, while Alphabet disclosed plans last month to issue Japanese yen-denominated bonds for the first time.

Nvidia does not operate large-scale data centres, but demand for its processors has increased as companies invest in the infrastructure needed to train and operate advanced artificial intelligence models.

The company has also increased investment in processor development and now plans to release a new family of chips each year.

Nvidia held $13.24 billion in cash and cash equivalents at the end of its April 2026 quarter.

Its shares closed 3.3% higher on Monday.

Goldman Sachs, J.P. Morgan and Morgan Stanley are acting as bookrunners for the offering.