Nvidia is reportedly planning to raise at least $20 billion through debt, marking the chipmaker’s first bond sale since the AI boom began.
In an SEC filing on Monday, Nvidia announced plans for a capital raise but did not specify the amount.
Earlier this year, the chipmaker said it could raise nearly $25 billion by issuing unsecured commercial paper notes. The debt issuance could potentially reach $25 billion.
Nvidia holds roughly $7.5 billion in long-term debt and an additional $1 billion in short-term debt. In its most recent debt issuance in 2021, Nvidia raised $5 billion, with notes maturing as late as 2031. At that time, Nvidia was significantly smaller, generating about $27 billion in revenue for fiscal 2022, compared to $216 billion in sales projected for fiscal 2026.
In May, Nvidia announced a bold capital return initiative, increasing its dividend from one cent to 25 cents per share and outlining plans to repurchase $80 billion in shares.
In the latest quarter, Nvidia produced $49 billion in free cash flow, compared to $35 billion a year prior. During its recent earnings call, the company reaffirmed its plan to return approximately 50% of its free cash flow to shareholders this year.
Nvidia’s stock increased by 3.5% after the news, bringing its year-to-date gain to approximately 14%.
By CEO NA Editorial Staff
