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Nvidia plans to raise at least $20 billion in first bond sale since AI boom began

Chip giant Nvidia plans to borrow at least $20 billion in its first major corporate bond sale since the AI investment cycle began. The company is weighing a deal that could rise to $25 billion if demand is strong. The move tests investor appetite as Nvidia finances data-centre orders from its hyperscale customers.

Data centre server racks illuminated by blue light
Data centre server racks illuminated by blue lightPhoto: panumas nikhomkhai / Pexels
CNBC Top News1 h agoNVDA AMD MU

Chipmaker Nvidia plans to borrow at least $20 billion in its first major corporate bond sale since the AI investment cycle began. According to CNBC sources, the deal could grow to $25 billion if demand is strong. The move marks an unusual turn toward leverage for a company whose cash position has strengthened sharply in recent years.

The strategy is to pull forward financing for data-centre orders from hyperscale customers including Microsoft, Meta, Alphabet and Amazon. Debt-market analysts say the bond is likely to carry a rating near AAA and could cement a wave of AI-sector corporate issuance seen in recent months.

The deal lands alongside AMD's valuation approaching $900 billion last week and rising expectations around Micron earnings, reflecting the broad financing needs across the AI hardware sector. Investors will watch the pricing and the order book closely. This content is not investment advice.

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This article is an AI-curated summary of the original story published by CNBC Top News. The illustration is a stock photo by panumas nikhomkhai from Pexels and is not from the original story.

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