NVIDIA issues high-grade bonds again after a five-year hiatus.

Nvidia seeks to issue high-rated bonds again after about five years, continuing the trend of companies leading the wave of borrowing for financing in the artificial intelligence boom. According to sources familiar with the matter, Nvidia is promoting a bond issue divided into seven maturity tranches, with terms ranging from 2 to 30 years. The preliminary pricing range for the longest-dated bond is around 90 basis points higher than U.S. Treasury yields. Companies including Alphabet and Amazon have raised billions of dollars through the debt market since last year to build the computational infrastructure needed for the rapid expansion of artificial intelligence, spanning across various sectors in the bond market. Investors continue to absorb the influx of new bonds. Sources indicate that the proceeds from Nvidia's bond issuance will be used for general corporate purposes, including repayment and refinancing of existing debt. Nvidia last entered the investment-grade bond market in June 2021, raising $5 billion at the time.