Nvidia is reportedly considering raising up to $20bn in the US bond market through a multi-tranche offering. This move comes amid a wave of significant financing activity amongst major players in artificial intelligence.
According to reports from Bloomberg, citing sources familiar with the matter, Nvidia could soon proceed with a US bond issuance aimed at raising approximately $20bn. The deal is expected to be structured in seven tranches, with maturities ranging from two to thirty years.
According to the same sources cited by Bloomberg, the anticipated pricing for the longest-dated tranche would represent a spread of approximately 0.9% over US Treasuries.
This news arrives as several artificial intelligence giants ramp up their financing operations. Alphabet recently announced a successful $84.75bn capital raise. Earlier this month, the Financial Times also revealed that Meta was exploring a potential fundraise of up to $30bn.
NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (89%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (11%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (88.3%), gaming (8.7%), professional visualization (1.4%), automotive (1.3%) and other (0.3%).
Net sales are distributed geographically as follows: the United States (46.9%), Singapore (18.2%), Taiwan (15.8%), China and Hong Kong (13.1%) and other (6%).
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