Chipmaker Nvidia (NVDA) plans to raise at least $20 billion U.S. in debt from its first corporate bond sale since 2021.
Earlier this year, Nvidia executives said that they could raise up to $25 billion U.S. through issuance of investment grade corporate bonds.
The leading chipmaker is the latest technology company tied to the artificial intelligence (A.I.) trade that is turning to the capital markets to raise money through debt.
Google parent company Alphabet (GOOGL) announced plans earlier this month to raise $85 billion U.S. after securing more than $55 billion U.S. in a bond sale last November.
Amazon (AMZN) earlier this year raised $54 billion U.S. in debt through U.S. and European bond sales and has announced plans to raise about $10 billion U.S. in a Canadian debt sale.
Currently, Nvidia has about $7.5 billion U.S. in long-term debt and another $1 billion U.S. of short-term debt on its books. In its last debt raise in 2021, Nvidia brought in $5 billion U.S.
Nvidia said that it intends to use proceeds from the latest debt sale for general corporate purposes, including repayment and refinancing of its existing debt load.
In its most recent financial results, Nvidia announced an aggressive capital return program to stockholders, lifting its dividend from a penny a share to $0.25 U.S. and repurchasing $80 billion U.S. of its own shares.
NVDA stock has risen 13% this year to trade at $212.45 U.S. per share.
