Nvidia is entering the bond market for the first time in five years and aims to raise at least $20 billion. The chipmaker is offering bonds with seven different maturities.
For the first time since it began dominating the AI sector, Nvidia is entering the bond market. The chip company is preparing to sell investment-grade bonds, Bloomberg reports, citing an anonymous source. The target proceeds amount to at least $20 billion, significantly more than the previous issuance in June 2021, when Nvidia raised $5 billion. Admittedly, more than a year before the rise of generative AI, the company’s ambitions were much more modest than they are today.
The bonds are being offered in seven different maturities, ranging from two to thirty years. For the longest-maturity bonds, the company is applying a spread of approximately 0.9 percentage points above the U.S. Treasury yield. Goldman Sachs, JPMorgan Chase, and Morgan Stanley are jointly managing the offering. The proceeds will go toward various expenses, including the repayment and refinancing of existing debt.
Tech sector borrows heavily for AI infrastructure
With this move, Nvidia joins an ever-growing group of hyperscalers and other tech companies. These companies are borrowing money at a rapid pace to finance their AI infrastructure. Alphabet and Amazon, for example, are also raising hundreds of billions of dollars through bond markets.
According to recent figures, the five largest AI tech companies collectively issued $108 billion in bonds in 2025. Expected capital expenditures in the sector are rising to approximately $660 billion for this calendar year alone, representing annual growth of nearly 75 percent. Investors remain eager buyers of these types of debt securities.
A New Dimension
While Google and Amazon are both buyers of Nvidia chips and customers of TSMC or Intel for manufacturing based on their own chip designs, the situation for Nvidia is somewhat different. The company has gross margins of nearly 75 percent and quarterly revenue of over $80 billion in Q1 2026. Even those figures are not enough to cover the planned expenditures for further capacity expansion, it seems.
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