Nvidia rises after $20B bond plan, AI chip stocks rally

Nvidia shares climbed more than 2% after reports the company is preparing a $20 billion U.S. bond offering, its first investment-grade debt sale in five years. The news coincided with gains across AI chip stocks.

People familiar with the plans indicated the package would include seven tranches of notes with maturities extending to 2056. A term sheet reviewed by market participants shows proceeds are intended for general corporate purposes, including refinancing and repaying existing debt. Goldman Sachs, JPMorgan and Morgan Stanley are listed as bookrunners.

Nvidia last tapped the investment-grade market in June 2021, when it raised $5 billion. The company reported $13.24 billion in cash and cash equivalents for the quarter ended April 2026. The proposed offering would add liquidity while Nvidia expands product development and meets customer demand for AI computing.

The bond news lifted the broader semiconductor sector. Micron Technology rose more than 7% and Advanced Micro Devices gained over 7%, with other chipmakers advancing in early trading.

Market participants pointed to reports of progress toward a U.S.-Iran peace agreement expected to be signed later this week. Those reports helped push oil prices lower and contributed to a rotation into growth-oriented shares.

Industry estimates indicate combined AI-related spending by major technology companies could top $700 billion this year, up from roughly $400 billion in 2025. Several large tech firms have recently used debt markets: Meta filed for a bond offering of up to $30 billion, Alphabet disclosed plans to issue yen-denominated bonds for the first time, and Amazon raised C$14 billion earlier this month and has borrowed more than $82 billion since the start of 2025 to expand data centers, AI chips and cloud infrastructure.

Nvidia does not operate hyperscale data centers at the scale of some cloud providers, but demand for its processors remains a key driver of AI infrastructure spending. The company has released new generations of AI chips on an annual basis; the proposed bond issue would provide additional capital flexibility to support that investment pace.