Nvidia is joining a sweeping wave of technology companies tapping bond markets to finance spending tied to the artificial intelligence buildout.
The chipmaker is selling at least $20 billion in bonds, marking its first debt offering in five years and its largest on record.
The deal was ultimately boosted from its initial $20 billion target, reflecting extraordinary investor appetite for Nvidia paper.
The offering attracted as much as $85 billion in orders, more than three times the total size of the bond itself.
Structured across seven tranches, the deal spans maturities ranging from two years out to 30, with the longest-dated notes maturing in 2056 according to an SEC filing.
The yield on the longest-dated portion is being discussed at around 0.9 percentage points above Treasuries, a relatively tight spread reflecting Nvidia’s strong credit standing.
A company spokesperson said Nvidia aims to use the proceeds for general corporate purposes, including the repayment and refinancing of outstanding notes.
JPMorgan Chase, Morgan Stanley, and Goldman Sachs are among the banks managing the offering, which dwarfs Nvidia’s prior debt deals from 2020 and 2021 combined by a factor of at least four.
The bond sale arrives alongside an $80 billion share buyback program and a dividend increase from $0.01 to $0.25 per share, signaling broad confidence in the company’s financial position.
The deal extends a relentless wave of borrowing from companies spearheading the AI boom, with firms such as Alphabet and Amazon raising hundreds of billions of dollars to build computing capacity.
In the U.S. public bond market alone, tech companies have raised approximately $157 billion year-to-date, representing roughly 70% more issuance than the same period last year.
Across all AI-linked debt markets, some $236 billion has been issued so far this year, a 357% increase from the same period last year, according to available data.
Morgan Stanley expects that figure to more than double to $570 billion by year-end, underscoring how aggressively the sector is leaning on credit markets.
While Nvidia has not been building large-scale data centers itself, its chips used in AI servers are seeing red-hot demand from companies training and running increasingly advanced models.
Nvidia has been investing heavily in developing its most advanced processors and now releases a new family of chips every year, each with higher AI capabilities than the last.
The Financial Times noted that Oracle, one of the most aggressive AI infrastructure borrowers, sits only two notches above junk, while Nvidia holds a double-A rating, a meaningful distinction when interest rates remain elevated.
“This is the latest sign that the AI investment fever that has long been concentrated in equity markets is spreading to credit markets,” said Johnathan Owen, a member of the investment-grade portfolio management team at TwentyFour Asset Management.
The sheer scale of the offering from one of the most profitable companies in the world highlights just how capital-intensive the AI era has become for even its biggest winners.
