Nvidia Corp. is preparing to sell investment-grade bonds for the first time in nearly five years, according to Bloomberg. The chipmaker aims to raise at least $20 billion through the offering.
The company offers bonds with seven different maturities, ranging from two to 30 years. The longest-term bonds are being marketed at a spread of about 0.90 percentage points above U.S. Treasury yields, according to a person familiar with the matter who asked not to be identified.
The proceeds from the sale will be used for general corporate purposes, including the repayment and refinancing of existing bonds.
The bond offering is being managed by Goldman Sachs Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), and Morgan Stanley (NYSE:MS).
The last time Nvidia Corp entered the investment bond market was in June 2021, when it raised $5 billion.
Several major technology companies, including Alphabet Inc. (NASDAQ:GOOGL) and Amazon.com (NASDAQ:AMZN), have borrowed to expand their computing infrastructure for artificial intelligence applications. These companies have collectively raised hundreds of billions of dollars since last year, as investors continue to flock to these religious offerings.
