Nvidia looks to raise at least US$20 billion from bond offering

NVIDIA is seeking to raise at least US$20 billion from its first corporate bond sale since 2021, according to people with direct knowledge of the matter. 

The chipmaker is marketing bonds in seven tranches, with maturities spanning two to 30 years, according to a person with knowledge of the matter.

Price talk on the longest tenor is a spread of about 0.9 percentage point above Treasuries, one of the people said, asking not to be identified because they’re not authorised to speak publicly.

The deal is extending a relentless wave of borrowing for companies spearheading the artificial intelligence boom.

Firms such as Alphabet and Amazon.com have been tapping every corner of the debt market to build the computing capacity needed for AI’s rapid expansion, having raised hundreds of billions of dollars since last year. Investors have readily absorbed the supply.

Proceeds from Nvidia’s sale will help fund general corporate purposes, including the repayment and refinancing of outstanding notes, the person said. 

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Representatives for JPMorgan Chase & Co. and Morgan Stanley, among the banks running the offering, declined to comment. Those for Nvidia and Goldman Sachs Group, which is also managing the bond sale, didn’t respond to requests for comment. 

Nvidia last tapped the investment-grade bond market in June 2021, when it raised US$5 billion. BLOOMBERG