The chip powerhouse NVIDIA is jumping into the AI bond issuance wave.
On June 15 local time, NVIDIA finalized pricing for a $25 billion investment-grade bond offering. Subscription demand surged more than three times the size, pulling in roughly $85 billion (about 570 billion RMB) in orders.
In response to the news, NVIDIA’s stock jumped over 3.50% during the early hours of June 16 Beijing time. The company added about $175.7 billion to its market cap in a single day—that’s roughly 1.19 trillion RMB.
This marks NVIDIA’s very first bond issuance in five years. Back in June 2021, the company tapped the debt market for only $5 billion.
Rumor had it the initial target was around $20 billion, but NVIDIA bumped the scale up by 25%. The bonds will roll out in seven tranches ranging from two-year to 30-year maturities. The longest-dated ones are priced at roughly 0.65 percentage points above US Treasury yields. Goldman Sachs, JPMorgan Chase, and Morgan Stanley are leading the bookrunning process.
NVIDIA clarified that the proceeds will cover standard corporate needs, including paying down existing debt and refinancing outstanding obligations.
According to NVIDIA’s Q1 FY2027 earnings report released on May 21, quarterly revenue hit an all-time high of $81.62 billion, up 85% year-over-year. Net profit skyrocketed to $58.3 billion, a massive 211% jump. Data center revenue alone accounted for $75.2 billion (up 92%), driving over 90% of total sales and solidifying its role as the primary growth engine. The company also lifted guidance for the next quarter to $91 billion.
Financials show that as of the end of April 2026 (Q1 FY2027), NVIDIA held around $13.24 billion in cash and equivalents. Industry watchers note that even with a healthy war chest, the company needs deep pockets to fund advanced AI chip production, supply chain scaling, and related business ventures amid the global rush for AI infrastructure. Tapping the bond market for long-term capital makes total sense—it helps streamline their capital structure and buys plenty of room for future expansion.
Bloomberg Intelligence analyst Robert Schiffman pointed out in a client note that securing relatively cheap long-term debt could lower NVIDIA’s average cost of capital. It’ll also strengthen their ability to finance strategic AI partnerships—including ties with OpenAI—without taking a hit on their stellar AA credit rating.
Over the past few months, NVIDIA has been actively rolling checks for various players across the semiconductor and AI sectors. In September 2025, they dropped $5 billion to grab a stake in chipmaker Intel, picking up roughly 215 million shares (about 4.91% of Intel’s total stock) and taking the spot as their fourth-largest shareholder. Fast forward to November that same year, and NVIDIA announced a massive $10 billion investment in another big model developer, Anthropic.
In February 2026, founder Jensen Huang revealed that NVIDIA was putting $30 billion into a fresh funding round for OpenAI. This follows up on a September 2025 joint announcement where NVIDIA and OpenAI locked in a strategic partnership. To secure long-term chip leases, both sides agreed that NVIDIA would continuously inject capital as OpenAI phases in new supercomputing facilities. That commitment caps out at $100 billion and supports deploying at least 10 gigawatts of AI data center capacity—featuring platforms like NVIDIA’s own Vera Rubin—specifically for training and running their next-gen AI models. We’re expecting the first gigawatt-scale system to go live in late 2026.
What really stands out here is how tech giants are flocking to the bond market as AI demand goes parabolic. By the end of May 2026, global AI-related bond issuances had ballooned to $236 billion—that’s nearly four times what we saw at the same point in 2025, marking a massive 357% surge.
Morgan Stanley’s latest research suggests that worldwide AI-linked bond offerings could push close to $570 billion in 2026, more than doubling last year’s figures. With hyperscale cloud providers expected to blow past $1 trillion in capital spending by 2027, the firm predicts bond issuance will ramp up even faster in the second half of this year. Plus, to diversify their funding streams, these cloud juggernauts are increasingly looking outside the US dollar space for their debt offerings.
On May 11, reports surfaced that Google’s parent company, Alphabet, is planning its maiden Japanese yen bond issuance. Earlier in February, Alphabet kicked off its second major debt offering of the year, strategically casting a wide net across multi-currency markets globally. The biggest headline grabber? A staggering 100-year British pound bond issued in the UK market, valued at 1 billion pounds (around $1.367 billion), which drew subscription orders nearing ten times the offer size. Around the same time, Google’s Swiss franc bonds came in with maturities spanning 3, 6, 10, 15, and 25 years. Meanwhile, their parallel US dollar bond drive attracted serious heat; initially aiming to raise $15 billion, overflowing demand pushed total subscriptions past $100 billion.
Amazon didn’t miss out either. On June 8, reports indicated they launched a Canadian dollar investment-grade bond sale. Insiders shared that the unsecured senior notes are split into five chunks, maturing anywhere from 3 to 30 years.Before that in May, rumors swirled about the company preparing to issue its first-ever Swiss franc bonds. And back in March, Amazon rolled out dual USD and euro debt plans: floating between $25 to 30 billion in American dollars alongside 14.5 billion euros in European currency.
Morgan Stanley’s report wraps up by pointing out a clear shift in the tech sector: companies are leaning heavily toward shorter-duration financing with structured repayment schedules. At the same time, sheer supply volume is now the main driver dictating bond pricing, even though the broader macroeconomic backdrop remains surprisingly stable.
