Nvidia plans to raise about $20 billion first debt sale in AI boom
Nvidia CEO Jensen Huang speaks with members of the media outside a restaurant in the Hongdae district of Seoul, South Korea, on June 5, 2026.
Seong Joon Cho | Bloomberg | Getty Images
Nvidia The chipmaker aims to raise at least $20 billion in debt in its first bond sale since the start of the AI boom, according to people familiar with the matter.
One filing With the SEC on Monday, Nvidia announced plans to raise capital but did not include the dollar amount. Earlier this year, the chip maker said it could raise up to $25 billion through the issuance of unsecured commercial paper. Sources, who asked not to be named because the figures are not publicly disclosed, said the debt sale could approach $25 billion.
Nvidia shares rose 3.5% on Monday and are up nearly 14% this year.
The chipmaker is the latest tech company relying on AI trading to tap into capital markets. Alphabet It announced plans to raise $85 billion in equity-linked offerings earlier this month, after raising more than $55 billion in fresh debt since November. And last week Super Micro announced a $7 billion equity-linked financing deal to help cover the cost of hardware component purchases.
AmazonMeanwhile, it raised about $54 billion in debt from U.S. and European bond sales earlier this year and last week announced plans to raise about $10 billion from a Canadian debt sale.
Nvidia has approximately $7.5 billion in long-term debt and $1 billion in short-term debt. in it recent debt increase Nvidia generated $5 billion in revenue in 2021, with bonds maturing through 2031. But at the time, Nvidia was a much smaller company, generating revenue of about $27 billion in fiscal 2022, compared to $216 billion in sales in fiscal 2026.
The launch of OpenAI’s ChatGPT in late 2022 has been a major catalyst for Nvidia’s historic growth rate that has followed; AI model companies and hyperscalers began gobbling up as much of the company’s graphics processing units as possible.
An Nvidia spokesman said the company plans to use the proceeds from the offering for general corporate purposes, including repaying and refinancing existing debt.
Nvidia announced an aggressive capital return program in May by increasing its dividend from one penny to 25 cents per share and announced plans to buy back $80 billion in stock. Nvidia generated $49 billion in free cash flow in the latest quarter, up from $35 billion in the same period last year, and in its latest earnings call reiterated plans to “return approximately 50% of free cash flow to shareholders this year.”
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