NVIDIA stock closed lower on Tuesday as investors assessed the chipmaker’s $25 billion bond offering and a wider decline across semiconductor shares.
Shares ended at $207.41, down 2.37%, after trading between $207.29 and $211.49. The closing price placed NVIDIA’s market value near $5.06 trillion. The stock had gained 3.3% on Monday before giving back part of that advance.
The NASDAQ Composite fell 1.15%, while the S&P 500 declined 0.57%. The Philadelphia Semiconductor Index dropped 5.7%, showing that selling pressure affected the wider chip sector.
NVIDIA sold $25 billion of investment-grade bonds through seven separate tranches. The company initially planned to raise $20 billion but increased the offering after investor orders reportedly reached ‘around $85 billion.’
The notes carry different maturity dates, with the longest running until 2056. NVIDIA capped the deal at $25 billion to maintain lower borrowing costs, according to a source familiar with the transaction.
The offering marked NVIDIA’s first investment-grade corporate bond sale since June 2021. At that time, the company raised $5 billion through notes with maturities extending to 2031.
NVIDIA said it would use the new funds for general corporate purposes. These uses may include repaying or refinancing existing debt. The company has about $7.5 billion in long-term debt and roughly $1 billion in short-term obligations.
According to its regulatory filing, the notes are unsecured and will not trade on a public exchange. NVIDIA also warned that debt repayments “may affect cash flow,” while changes to its credit rating could influence bond prices.
Demand for the offering came mainly from domestic investors. The transaction also surprised some market participants since NVIDIA provided little advance notice before entering the bond market.
One source said the company aimed to create a liquid benchmark for its borrowing costs rather than directly finance major capital spending. NVIDIA has not built data centers at the same scale as cloud service providers. Instead, it supplies the processors used in those facilities.
The bond sale comes as technology companies increase spending on artificial intelligence infrastructure. Combined AI-related investment by major technology groups could exceed $700 billion in 2026, compared with about $400 billion in 2025.
Companies are directing funds toward chips, power systems, servers, and data center construction. Global AI-related debt issuance could reach “close to $570 billion” by 2026, according to a recent market estimate.
NVIDIA reported $13.24 billion in cash and cash equivalents for the quarter ending in April 2026. It also generated $49 billion in free cash flow in its latest quarter, up from $35 billion one year earlier.
NVIDIA’s share decline formed part of a broader selloff in semiconductor stocks. Broadcom dropped 4.37% on Tuesday, while Advanced Micro Devices fell 7.30%.
The losses showed that investors reduced exposure across several chipmakers rather than reacting only to NVIDIA’s bond announcement. The Philadelphia Semiconductor Index’s 5.7% decline added to pressure across the sector.
Meanwhile, companies are still expanding AI infrastructure partnerships. Equinix announced plans to work with Cisco and NVIDIA on ‘Secure AI Factories.’ These data center systems combine computing, networking and security services for enterprise AI use.
“Enterprise AI starts with its physical foundation,” Equinix executive Gordon Mackintosh said. The statement focused on the infrastructure required to operate AI systems, although companies must still manage rising equipment, energy and financing costs.
US exchanges remain open on Wednesday. The next scheduled market holiday is Juneteenth on Friday, June 19, when NASDAQ and other major US exchanges will close.
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