Debt sale set to test investor appetite for further exposure to AI sector amid a deluge of borrowing.

Chipmaker Nvidia is planning to sell $25 billion of investment-grade debt in the US on Monday, its first bond sale in five years, in a test of investor appetite for further exposure to the AI sector.

In a marquee seven-part bond offering, the company will issue a wide range of maturities from two years to 30 years, according to a term sheet seen by the FT.

The issuance was upsized from $20 billion after receiving more than $85 billion in orders by early afternoon in New York, according to people familiar with the deal.

Thanks to robust demand, the 10-year portion of the bond was expected to yield 0.5 percentage points above US Treasuries, down from 0.75 percentage points during initial discussions, one of the people said.

Favorable market conditions after the US-Iran deal are allowing Nvidia to raise debt at a relatively low cost, said Lauren Wagandt, a portfolio manager at T Rowe Price.

“It’s a very high-quality company at the end of the day,” said Wagandt. “And it doesn’t come to the market as often as the other tech names.”

...read more at arstechnica.com