NVIDIA Shares Rise Over 2% on Plans to Raise At Least $20 Billion in Bond Offering

Stock News06-15

NVIDIA (NASDAQ: NVDA) shares climbed more than 2% in trading on Monday. The move followed reports that the company is planning to raise at least $20 billion through an investment-grade bond offering.

According to media reports citing sources familiar with the matter, NVIDIA intends to issue bonds across seven tranches, with maturities ranging from two to thirty years. The price guidance for the longest-dated tranche is reportedly around 90 basis points over the benchmark U.S. Treasury yield.

Wall Street investment banks have projected that corporate bond financing for companies involved in the AI arms race could reach $1.5 trillion over the next five years. NVIDIA's return to the debt market after a five-year hiatus serves as the latest indicator of the significant financing wave among tech giants and signals that this high-stakes investment trend is poised to continue escalating.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment