Nvidia Plans to Issue $20 Billion in Senior Notes Amid Strong Free Cash Flow

According to its Q1 FY2027 earnings report (as of April 26), Nvidia plans to issue at least $20 billion in senior notes, with maturities ranging from 2 to 30 years. The funds will be used for general corporate purposes, debt refinancing, AI data center and infrastructure development, research and development, supply chain advances, and strategic investments. During the quarter, Nvidia reported revenue of $81.6 billion and free cash flow of $48.6 billion.

Standard & Poor's recently upgraded Nvidia's credit rating to AA, citing its AI market leadership, strong cash generation capabilities, and solid balance sheet. The company also authorized an additional $80 billion in stock buybacks and increased its quarterly dividend from $0.01 to $0.25 per share.