Key facts
- Nvidia priced a $25 billion bond offering, its first since 2021.
- The bond sale attracted approximately $85 billion in investor orders.
- Proceeds will be used for general corporate purposes, including refinancing existing debt.
- The offering includes seven tranches with maturities ranging up to 30 years.
- Nvidia's share price closed up 3.5% following the announcement.
Nvidia has returned to the corporate debt market, pricing a $25 billion bond sale that drew approximately $85 billion in orders, signaling strong investor appetite for exposure to the artificial intelligence sector. This marks the chipmaker's first bond issuance since 2021 and is one of the largest by a technology company this year.
The deal, initially planned for around $20 billion, was enlarged due to demand exceeding expectations by more than three times. The favorable timing, with credit markets steadied by a US-Iran framework deal, allowed Nvidia to secure relatively cheap long-term financing. Bloomberg Intelligence analyst Robert Schiffman noted that the inexpensive long-dated debt lowers Nvidia's weighted average cost of capital, supporting its AI investments without jeopardizing its AA credit rating.
Nvidia stated the proceeds would be used for general corporate purposes, including repaying and refinancing existing notes. The scale of this issuance highlights the company's growing financing needs, driven by data center build-outs and demand from hyperscalers. This follows similar large debt issuances by Meta and Oracle, each raising $25 billion this year, and Amazon's $37 billion deal.
In contrast, Alphabet, Google's parent company, opted for an equity raise, pricing an $84.75 billion capital raise to fund its AI compute expansion. This equity move came on top of Alphabet's significant debt financing, which exceeded $85 billion in the first quarter of 2026 across six major currencies. Nvidia shares closed up 3.5% at $212.45 following the bond deal.