Nvidia seeks to raise $25B in first bond deal since 2021

Nvidia is planning to sell $25 billion of investment-grade debt in the US in a seven-part offering, its first bond sale in five years. The issuance, which ranges in maturities from two years to 30 years, was upsized from $20 billion after receiving more than $85 billion in orders.

Deal details

The company will offer bonds across a wide range of maturities, from two years to 30 years, according to a term sheet seen by the Financial Times. Early pricing indications showed the 10-year tranche was expected to yield 0.5 percentage points above US Treasuries, down from 0.75 percentage points during initial discussions. Nvidia said it intends to use the net proceeds for general corporate purposes, including repayment and refinancing of outstanding notes.

The offering is at least three times larger than Nvidia’s previous bond sale in 2021, when it raised about $5 billion during the coronavirus pandemic. When completed, the new issuance will more than triple Nvidia’s debt outstanding to about $30 billion from the current level of $8.5 billion. The company holds a double-A credit rating, the third-highest score. Goldman Sachs, JPMorgan, and Morgan Stanley are listed as active bookrunners on the transaction.

Lauren Wagandt, a portfolio manager at T Rowe Price, said favorable market conditions after the US-Iran deal were helping Nvidia raise debt at a relatively low cost and added, “It’s a very high-quality company at the end of the day.”

Context: Nvidia’s position in the AI funding cycle

Nvidia has been the biggest beneficiary of Big Tech’s spending on AI infrastructure, supplying the chips used to build large language models such as OpenAI’s GPT. Its free cash flow in the year to January jumped 59 percent to $96.6 billion. The company has also committed more than $90 billion to developers and suppliers, including OpenAI, Anthropic, xAI, Coherent, Marvell, Lumentum, and Corning.

In some cases Nvidia has acted as a backstop or financial guarantor for customers building cloud services on its chips, including CoreWeave and Nscale. That web of financing has prompted caution among some investors. Tom Murphy, global head of investment-grade credit at Columbia Threadneedle Investments, warned that “the market has started to get worried about these circular financings, because if somebody in that ecosystem is having a problem, then the whole thing could be a problem.”

The bond sale comes amid heavy capital activity elsewhere in tech: the deal follows Anthropic’s $35 billion financing backed by Broadcom and Alphabet’s recent $85 billion equity issuance, and arrives while markets digest record-size transactions like SpaceX’s $75 billion initial public offering.

Nvidia’s shares and valuation have shown recent volatility. The company’s valuation peaked at about $5.7 trillion in May, and its market capitalization slipped below $5 trillion at the end of last week.

Why it matters

The offering is a direct test of investor appetite for concentrated exposure to the AI supply chain. Strong demand that pushed the deal to an upsized $25 billion would signal continued willingness to finance leaders in the AI ecosystem at relatively tight spreads. At the same time, Nvidia’s growing role as both supplier and financier increases linkage across the sector, raising the potential for concentrated credit risk if one part of that ecosystem strains.

What to watch

Watch the deal’s final pricing, particularly the 10-year spread to US Treasuries, and whether the bond sale closes at the upsized $25 billion figure. Also monitor Nvidia’s reported debt outstanding after completion, which the company says would rise to about $30 billion from $8.5 billion.