Nvidia is issuing its first corporate bonds since 2021, aiming to raise up to $25 billion in investment-grade debt. The seven-tranche offering spans 2 to 30 years, with the longest notes pricing roughly 90 basis points over US Treasuries.
The deal is managed by Goldman Sachs, JPMorgan, and Morgan Stanley. Proceeds are designated for general corporate purposes and refinancing existing obligations, notably a 3.2% coupon note due September 2026.
Investor appetite roared past $85 billion in early orders-more than triple the total amount offered.
This $25 billion target is five times larger than the company’s previous $5 billion issuance in 2021. The strategy reflects a broader corporate shift. Meta and Salesforce have recently expanded bond issuances to fund an artificial intelligence infrastructure boom that demands massive investment in data centers and GPU clusters.
The overwhelming demand signals profound institutional confidence in Nvidia’s credit standing. The favorable pricing locks in cheap financing. However, the core risk remains clear: if the AI spending cycle decelerates sharply, Nvidia must service this substantial obligation against potentially declining revenues.