Lates News

Nvidia (NVDA.O) is seeking to issue high-rated bonds again for the first time in about five years, continuing the trend of leading companies in the artificial intelligence boom turning to debt financing. According to sources, Nvidia is promoting a bond issue divided into seven different maturity tranches ranging from 2 to 30 years. The preliminary pricing range for the longest-dated bonds is around 90 basis points higher than U.S. Treasury yields. Companies like Alphabet and Amazon have been raising billions of dollars in debt markets since last year to build the computational infrastructure needed to support the rapid expansion of artificial intelligence. Investors continue to absorb this new supply of bonds. Sources indicate that the funds raised from Nvidia's bond issuance will be used for general corporate purposes, including repaying and refinancing existing debt. Nvidia last entered the investment-grade bond market in June 2021, raising $5 billion at that time.