NVIDIA Hits Record High with 4% Gain

Deep News06:22

NVIDIA closed up 4% on Monday, reaching a new all-time high, with trading volume reaching $39.231 billion, making it the most actively traded stock in the U.S. market. A data center developer closely tied to NVIDIA plans to issue $4.5 billion in junk bonds on Monday to finance its 200-megawatt project in Nevada. The offering is led by JPMorgan, with initial yield guidance in the high range of 6%.

The project's ability to attract substantial funding hinges on NVIDIA's initial lease of approximately 16 years and renewal options—this model of securing blue-chip tenants significantly reduces cash flow risks for the project company. This marks the second large-scale bond issuance for the project: in February, the same developer raised $3.8 billion in junk bonds, attracting $14 billion in demand.

The additional financing comes at a time when AI computing demand is surging, and data center space and power supply are severely constrained. Tech giants are increasingly using such methods to secure future computing capacity. This infrastructure boom is spreading from investment-grade markets to the junk bond sector, with Alphabet recently seeking $5.7 billion in financing through a similar structure.

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