Nvidia Plans to Raise at Least $20 Billion in First Bond Sale Since AI Boom Began

Nvidia is preparing to raise at least $20 billion in corporate debt, according to sources with knowledge of the matter, marking the chipmaker's first bond sale since artificial intelligence spending began reshaping the semiconductor industry.

The company disclosed plans for the capital raise in a filing with the Securities and Exchange Commission on Monday but did not specify a dollar amount. Sources, who asked not to be named because the figures are not yet public, said the offering could ultimately reach closer to $25 billion — a ceiling the company had already signaled earlier this year when it said it could raise up to that amount through unsecured commercial paper notes.

An Nvidia spokesperson said the company intends to use the proceeds for general corporate purposes, including the repayment and refinancing of existing debt.

Nvidia last tapped the bond market in 2021, when it raised $5 billion with notes maturing as late as 2031. At the time, the company was generating roughly $27 billion in annual revenue. By fiscal 2026, that figure had grown to $216 billion, reflecting the scale of transformation driven by AI infrastructure spending.

The company currently carries about $7.5 billion in long-term debt and $1 billion in short-term debt, a comparatively lean balance sheet given its size.

Nvidia shares rose 3.5% on Monday and are up approximately 14% this year.

The offering positions Nvidia alongside a cohort of technology companies that have aggressively tapped capital markets in recent months. Alphabet announced plans earlier this month to raise $85 billion in equity-related offerings after securing more than $55 billion in fresh debt since November. Super Micro announced $7 billion in equity-related financing deals last week to help cover hardware component costs, while Amazon raised roughly $54 billion in debt earlier this year through U.S. and European bond sales and announced plans last week to raise about $10 billion more in a Canadian debt sale.

The surge in capital-raising activity across the sector reflects sustained demand for AI infrastructure, with hyperscalers and model developers continuing to acquire graphics processing units at pace. The launch of OpenAI's ChatGPT in late 2022 served as a major catalyst for Nvidia's subsequent growth, as cloud providers scrambled to secure the company's chips.

Nvidia also announced an aggressive shareholder return program in May, raising its quarterly dividend from one cent per share to 25 cents and committing to repurchase $80 billion in shares. The company generated $49 billion in free cash flow in its latest quarter, up from $35 billion in the same period a year earlier, and reiterated plans on its most recent earnings call to return roughly 50% of free cash flow to shareholders this year.

With its balance sheet capacity now being deployed at a scale commensurate with its revenue base, Nvidia's debt market debut since the AI era began signals how the company is structuring itself for a sustained, capital-intensive phase of growth — even as peers race to lock in financing of their own.

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