Nvidia Raises $25 Billion in Bonds, Returns to Investment-Grade Market After 5 Years

(CNA, San Francisco, 15th –综合外电) Nvidia announced today it will issue corporate bonds in the U.S. to raise $25 billion, aiming to enhance liquidity. The artificial intelligence (AI) chip leader last entered the investment-grade bond market in 2021, raising $5 billion at that time.

Earlier, Reuters cited sources reporting that Nvidia's bond issuance exceeded initial plans, with investor subscription demand reaching $85 billion—far surpassing the originally expected $20 billion.

According to term sheets obtained by Reuters, Nvidia plans to issue seven different maturity bonds, with the latest maturing in 2056.

Sources indicated that subscription demand came primarily from domestic U.S. investors, and since Nvidia had previously disclosed almost no information about the plan, the announcement surprised the market.

A Nvidia spokesperson stated that the raised funds will be used for general corporate purposes, including repaying and refinancing existing debt. However, sources noted that the primary goal of this issuance is not to fund capital expenditures, but to establish a liquid credit cost benchmark.

One source said Nvidia capped the issuance at $25 billion to maintain a lower credit spread, a stark contrast to large cloud service providers who take on massive debt to invest in AI infrastructure.

Tech giants have recently signaled they will not slow down AI investments, with total spending in the sector expected to exceed $700 billion this year, up from around $400 billion in 2025.

Meta, parent company of Facebook, filed a bond issuance plan last October for up to $30 billion, while Alphabet disclosed last month its first yen-denominated bond issuance.

Although Nvidia itself does not build large-scale data centers, its chips are core components in relevant servers. As companies race to train and run increasingly advanced AI models, market demand remains strong.

To keep pace with the rapid development of the AI industry, Nvidia has continuously invested heavily in R&D for cutting-edge processors, launching new-generation chip products almost every year, with AI computing performance steadily improving.

As of the fiscal quarter ending April 2026, Nvidia held $13.24 billion in cash and cash equivalents. Nvidia's stock closed up 3.3% today.

Goldman Sachs, J.P. Morgan, and Morgan Stanley are serving as joint lead underwriters for this bond issuance. (Translation: Liu Wenyu) 1150616