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Chipmaker Nvidia Seeks to Raise over $25B in First Bond Deal Since 2021
The chipmaker is tapping debt markets as demand for advanced AI chips stays strong, with seven tranches of notes due as late as 2056.
- On Monday, Nvidia Corp. disclosed plans to raise about $20 billion through a U.S. bond issuance, tapping the debt market to fund capital requirements for producing cutting-edge AI chips.
- The AI chip leader has not accessed the investment grade bond market in five years, having last raised $5 billion in 2021 before the ChatGPT launch in late 2022 sparked demand for its processors.
- Big Tech companies have signaled that spending on AI will not slow down, with Alphabet, Amazon, and Super Micro recently securing significant financing for capital outlays.
- Nvidia generated $49 billion in free cash flow in the latest quarter, up from $35 billion a year earlier, demonstrating strong financial capacity despite the capital raise.
- Shares rose 3% on Monday and are up about 13% this year, while analysts at Wedbush described the chipmaker as currently undervalued in the competitive AI market.
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36 Articles
Nvidia raises €21.5bn in first bond sale since 2021 on AI demand
Nvidia has returned to the corporate debt market for the first time in five years, pricing a $25 billion (€21.5bn) bond sale that drew roughly $85 billion (€73.2bn) in orders, a sign of investors' strong appetite for exposure to AI.
·France
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Coverage Details
Total News Sources36
Leaning Left4Leaning Right4Center9Last UpdatedBias Distribution53% Center
Bias Distribution
- 53% of the sources are Center
53% Center
L 24%
C 53%
R 23%
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