Nvidia Plans First Bond Sale Since 2021 to Raise Over $25 Billion Nvidia’s latest move to tap debt markets underscores both the strength and the strain in the AI financing boom, as the chipmaker prepares its largest-ever bond sale while investor appetite for tech debt is increasingly being tested.

Early plans and rapid upsizing

On Monday, Nvidia launched its first US bond offering since 2021, initially targeting about $20 billion across multiple maturities from two to 30 years. Investor demand was intense: orders quickly surpassed $85 billion by early afternoon in New York, prompting the company to upsize the deal to more than $25 billion.

The transaction, described as a “marquee seven-part bond offering,” is Nvidia’s first bond sale in five years and at least three times larger than its roughly $5 billion issue during the pandemic in 2021. Once completed, the new bonds will more than triple Nvidia’s total debt to about $30 billion from $8.5 billion.

Market conditions and pricing

Robust demand allowed Nvidia to tighten pricing as the sale progressed. The 10-year tranche was expected to yield about 0.5 percentage points above US Treasuries, down from 0.75 percentage points discussed earlier in the day. A portfolio manager at T. Rowe Price called Nvidia “a very high-quality company” and noted that it “doesn’t come to the market as often as the other tech names,” framing the deal as a relatively rare chance for bond investors to gain exposure.

Favorable conditions following a US–Iran deal also helped lower Nvidia’s borrowing costs, even as Wall Street faces a “torrent” of new equity and debt issuance, including a record $75 billion IPO from SpaceX.

Strategy and broader AI financing race

Nvidia said it will use the proceeds for “general corporate purposes, including repayment and refinancing of outstanding notes,” while continuing heavy investment in AI infrastructure and related companies. The company is widely seen as the biggest beneficiary of Big Tech’s trillion‑dollar AI spending spree, generating substantial free cash flow even as its market value has recently slipped.

At the same time, the sale will test whether investors still want more exposure to AI-linked credit after a wave of tech borrowing. Some peers are already looking elsewhere: Anthropic has turned to private credit for a $35 billion deal, while Alphabet opted for its first equity issuance in over two decades to raise $85 billion.

[1] Financial Times — “Chipmaker Nvidia seeks to raise over $25bn in first bond deal since 2021”

[2] Ars Technica — “Chipmaker Nvidia seeks to raise over $25B in first bond deal since 2021”

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