--- title: "NVIDIA returns to the bond market after five years: plans to issue bonds of at least $20 billion, as the AI financing frenzy in Silicon Valley stirs up huge waves again" type: "News" locale: "en" url: "https://longbridge.com/en/news/289792975.md" description: "NVIDIA plans to issue at least $20 billion in high-grade bonds, marking its first return to the bond market since 2021. The bond issuance will span 2 to 30 years and aims to meet the demand for AI chips and capital expenditures for data centers, while avoiding equity dilution. JPMorgan Chase and others will act as underwriters, with the funds raised for general corporate purposes and refinancing. This move is seen as a strategic initiative to lock in low-cost funding in the current interest rate environment to support long-term growth" datetime: "2026-06-15T13:37:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/289792975.md) - [en](https://longbridge.com/en/news/289792975.md) - [zh-HK](https://longbridge.com/zh-HK/news/289792975.md) --- # NVIDIA returns to the bond market after five years: plans to issue bonds of at least $20 billion, as the AI financing frenzy in Silicon Valley stirs up huge waves again According to the Zhitong Finance APP, since the wave of artificial intelligence (AI) has swept the globe, Silicon Valley tech giants have been using all means to finance in order to seize the computing power high ground. Following Google's (GOOGL.US) announcement of an $85 billion equity financing, and the bond issuances by Amazon (AMZN.US) and Microsoft (MSFT.US), the absolute leader in the AI chip field, NVIDIA (NVDA.US), has also knocked on the door of the investment-grade bond market. According to informed sources, NVIDIA plans to raise at least $20 billion by issuing high-grade bonds, marking the company's first return to the corporate bond market since 2021. It is reported that NVIDIA intends to issue seven tranches of bonds, with maturities ranging from 2 to 30 years, and the preliminary pricing range for the longest tranche is about 90 basis points over the yield of U.S. Treasury bonds. Sources say that the proceeds will be used for general corporate purposes, including the repayment and refinancing of existing notes. JPMorgan Chase, Morgan Stanley, and Goldman Sachs are serving as joint underwriters for this issuance. It is understood that NVIDIA last entered the investment-grade bond market in June 2021, when the financing scale was $5 billion. This bond issuance comes at a time when NVIDIA is striving to meet the strong market demand for its AI accelerators (including the H100 and the upcoming Blackwell series). The company's capital expenditures have significantly increased, with billions of dollars being invested in data center capacity and manufacturing. By issuing bonds instead of equity financing, NVIDIA can fully leverage its strong credit rating while avoiding the dilution of shareholder equity. For NVIDIA, the current timing is strategically significant: as interest rates stabilize and investor demand for AI-related assets remains strong, the company is expected to lock in relatively low yields. "This demonstrates confidence in NVIDIA's long-term growth trajectory," said a credit strategist at a Wall Street bank. "Essentially, they are saying, we can borrow funds at a low cost now for future investments." NVIDIA declined to comment on the bond issuance plan. The company recorded a net profit of $16.6 billion in the most recent quarter, highlighting its strong cash-generating ability. However, the AI arms race is a capital-intensive industry, and even cash-rich companies are seeking external funding to accelerate their deployment pace. Rating agencies have highly recognized NVIDIA's financial condition. S&P Global recently upgraded NVIDIA's credit rating to AA, and Moody's also raised the rating of NVIDIA's senior unsecured bonds to Aa1. S&P cited the "insatiable demand" for AI systems, predicting that NVIDIA's revenue will grow by 82% to $394 billion in fiscal year 2027, further increasing to $544 billion in 2028, with free cash flow expected to reach $276 billion by 2028. Analysts expect its net profit to reach $227 billion in 2027, climbing further to $305 billion in 2028. **Not just NVIDIA: AI giants kick off a crazy financing model, with bonds and equity working in tandem** This move also echoes the widespread trend of Silicon Valley tech giants, including Microsoft and Google, financing for AI infrastructure. Dealogic data shows that "AI hyperscale companies," including Google, Amazon, Meta (META.US), Microsoft, and Oracle (ORCL.US), have cumulatively issued $159 billion in bonds this year, significantly higher than $108 billion in 2025 and $17 billion in 2024 Only four large technology companies are expected to spend more than $670 billion this year in data centers and related AI fields, a level of investment that even exceeds the proportion of the economy during the expansion of the American railroads in the 1850s. Financing channels extend far beyond the bond market. At the beginning of June, Google announced an equity financing plan totaling approximately $85 billion, in which Berkshire Hathaway (BRK.A.US) subscribed $10 billion through a private placement. The public offering portion was increased from $30 billion to $45 billion due to oversubscription, marking the largest equity financing in the company's history, with all proceeds directed towards AI infrastructure development. Additionally, reports indicate that Meta executives are also discussing the possibility of issuing new shares worth tens of billions of dollars to fund AI-related capital expenditures, which could reach up to $145 billion this year and even higher by 2027. Meanwhile, following SpaceX's (SPCE.US) successful IPO, OpenAI and Anthropic are also advancing their IPO plans, with 2026 expected to be a year of unprecedented IPO financing. In terms of market depth, the reach of tech giants has extended into the global bond market. Morgan Stanley predicts that the global issuance of AI-related bonds will approach $570 billion by 2026, more than doubling from last year; as of the end of May, approximately $236 billion in AI-related debt financing has been issued globally, about four times the financing scale of the same period last year. Google has issued bonds covering US dollars, Canadian dollars, Japanese yen, euros, Swiss francs, and British pounds, including a rare 100-year British pound bond; Amazon raised €14.5 billion in March through eight separate transactions, setting a record for the largest issuance in the euro corporate bond market. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260615/1781529970685648.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) However, large-scale borrowing has also raised concerns in the industry about an AI investment bubble. UBS estimates that by 2026, the capital expenditures of ultra-large cloud service providers are expected to consume nearly 100% of their operating cash flow, while the average level over the past decade has been only about 40%, with the bond market filling this financing gap. Some investors believe that the construction of AI infrastructure may experience disorderly expansion, with companies at risk of over-investment, ultimately leading to the market potentially eliminating underperforming participants. S&P has also pointed out that NVIDIA still heavily relies on TSMC (TSM.US) for the production of advanced chips, and production disruptions or geopolitical tensions could affect its supply capabilities. Regardless, the capital expenditure race in the AI field is far from over. Wall Street investment banks predict that the bond financing scale for companies participating in the AI arms race will reach $1.5 trillion over the next five years. NVIDIA's return to the bond market after five years is not only the latest footnote in the wave of financing among tech giants but also indicates that this gamble will continue to escalate ### Related Stocks - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [JPM.US](https://longbridge.com/en/quote/JPM.US.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md) - [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md) - [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md) - [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md) - [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md) - [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md) - [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md) - [09388.HK](https://longbridge.com/en/quote/09388.HK.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [JPMO.US](https://longbridge.com/en/quote/JPMO.US.md) - [JPX.US](https://longbridge.com/en/quote/JPX.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [MS.US](https://longbridge.com/en/quote/MS.US.md) - [GS.US](https://longbridge.com/en/quote/GS.US.md) - [BRK.A.US](https://longbridge.com/en/quote/BRK.A.US.md) - [BRK.B.US](https://longbridge.com/en/quote/BRK.B.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [ORCL.US](https://longbridge.com/en/quote/ORCL.US.md) - [UBS.US](https://longbridge.com/en/quote/UBS.US.md) - [SPGI.US](https://longbridge.com/en/quote/SPGI.US.md) - [MCO.US](https://longbridge.com/en/quote/MCO.US.md) - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [JPM-M.US](https://longbridge.com/en/quote/JPM-M.US.md) - [JPM-C.US](https://longbridge.com/en/quote/JPM-C.US.md) - [JPM-D.US](https://longbridge.com/en/quote/JPM-D.US.md) - [JPM-L.US](https://longbridge.com/en/quote/JPM-L.US.md) - [8634.JP](https://longbridge.com/en/quote/8634.JP.md) - [JPM-K.US](https://longbridge.com/en/quote/JPM-K.US.md) - [JPM-J.US](https://longbridge.com/en/quote/JPM-J.US.md) - [MS-O.US](https://longbridge.com/en/quote/MS-O.US.md) - [MS-Q.US](https://longbridge.com/en/quote/MS-Q.US.md) - [MS-E.US](https://longbridge.com/en/quote/MS-E.US.md) - [MS-I.US](https://longbridge.com/en/quote/MS-I.US.md) - [MS-L.US](https://longbridge.com/en/quote/MS-L.US.md) - [MS-P.US](https://longbridge.com/en/quote/MS-P.US.md) - [MS-A.US](https://longbridge.com/en/quote/MS-A.US.md) - [MS-F.US](https://longbridge.com/en/quote/MS-F.US.md) - [MS-K.US](https://longbridge.com/en/quote/MS-K.US.md) - [W4VR.SG](https://longbridge.com/en/quote/W4VR.SG.md) - [ORCL-D.US](https://longbridge.com/en/quote/ORCL-D.US.md) ## Related News & Research - [Nvidia or AMD: Top Investor Says Only One AI Stock Is Worth Buying](https://longbridge.com/en/news/289369149.md) - [Chip startup Tensordyne expects $200 million in orders for AI system to rival Nvidia](https://longbridge.com/en/news/289795764.md) - [Apple's Biggest AI Bet Yet Runs On NVIDIA, Not Its Own Chips](https://longbridge.com/en/news/289178134.md) - [South Korea's Naver to build gigawatt-scale AI factories using Nvidia technology](https://longbridge.com/en/news/288973405.md) - [JPMorgan Chase (JPM) to Deploy AI Agents Across Its Banking Operations](https://longbridge.com/en/news/289214151.md)