This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) is preparing to sell investment-grade bonds for the first time since June 2021, targeting at least $20 billion across seven maturities from two to 30 years. The longest bonds are being marketed at roughly 90 basis points over Treasuries. Proceeds go toward general corporate purposes, including paying down and refinancing existing debt. Nvidia shares rose 1.29% intraday.
Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM), and Morgan Stanley (NYSE:MS) are managing the offering. The last time Nvidia touched the investment-grade bond market was June 2021, when it raised $5 billion. The new offering would be four times that size.
The move follows a wave of technology debt issuance. Alphabet (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) have both been in bond markets this year to fund AI infrastructure, and Big Tech has collectively raised hundreds of billions in debt since last year with no sign of investor fatigue.
