Nvidia's $25 Billion Bond Bonanza and $5 Billion AI Deal Signal Growth Push Amid China Stalemate
17.06.2026 - 07:15:17 | boerse-global.de
Nvidia is pulling off a rare double play in global capital markets: locking in cheap long-term debt while simultaneously signing billion-dollar AI infrastructure deals. Yet the shadow of China's frozen market continues to hang over the chipmaker's otherwise stellar outlook.
Investors snapped up $25 billion in Nvidia bonds this week, forcing the company to upsize its original $20 billion target. Order books swelled with $85 billion in bids across seven tranches spanning maturities of up to 30 years. Goldman Sachs, JPMorgan Chase and Morgan Stanley managed the sale. The overwhelming demand crushed risk premiums before the notes even hit the market.
The move is purely a capital structure decision. Nvidia isn't short on cash — its operating cash flow topped $50 billion in the most recent quarter alone, and reserves sit at similar levels. By issuing debt, the company locks in favourable long-term rates without diluting shareholders. Proceeds will go toward general corporate purposes and refinancing roughly $8.5 billion in existing liabilities, leaving the $80 billion share buyback programme untouched.
Parallel to the debt raise, Nvidia deepened its operational reach with two major announcements. In Australia, SharonAI Holdings signed a six-year agreement to build 72 megawatts of new data centre capacity equipped with up to 40,000 Grace-Blackwell GB300 GPUs. The framework contract is valued at up to $4.88 billion. SharonAI's stock surged as much as 25 percent on the news. Under the novel deal structure, Nvidia receives not only hardware revenue but also a slice of the cloud income generated by the capacity — embedding the company deeper into the AI value chain. SharonAI's total capacity will reach 132 megawatts, with 102 megawatts already committed to end customers. By mid-2027, more than 55,000 Nvidia GPUs will be in operation.
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In South Korea, Nvidia teamed up with SK Telecom to build a gigawatt-scale AI cloud. The first AI factory is slated to launch in 2027. Partnerships with SK hynix, Naver, LG, Hyundai and Doosan round out a broad, locally anchored AI infrastructure built on Nvidia's DSX platform.
Yet for every stride in Australia and Korea, there is a stall in China. Washington has approved roughly ten Chinese companies — including Alibaba, Tencent, ByteDance and JD.com — to buy Nvidia's H200, the company's second-most powerful AI chip. Each approved buyer can acquire up to 75,000 chips. Not a single one has been delivered. Chinese companies have pulled back following signals from Beijing that orders should be blocked or heavily scrutinised. For Nvidia, it is a painful reversal. Before export restrictions, the company held roughly 95 percent of China's AI chip market, and the country contributed 13 percent of total revenue. CEO Jensen Huang has estimated China's AI market alone at $50 billion this year.
The operational fundamentals remain formidable. In the first quarter of fiscal 2027, reported in late May 2026, Nvidia posted $81.6 billion in revenue, up 85 percent year over year. The data centre segment alone contributed $75.2 billion. Management guided for roughly $91 billion in revenue in the current quarter — a near-95 percent jump from a year earlier. A consensus of 38 analysts rates the stock a Strong Buy.
Despite the bond success, equity investors are unenthusiastic. Shares slipped 1.69 percent on the day of the debt announcement, trading at €180.04 in European markets. The stock has shed 5.6 percent over the past month, though it remains up nearly 12 percent year-to-date. At €178.78, the primary article notes the share price sits roughly 10 percent above its 200-day moving average but still 12 percent below the May all-time high. The relative strength index of 47 points to neither overbought nor oversold territory — the stock is waiting for its next catalyst.
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That catalyst could come from the annual shareholder meeting on June 24. More consequential, however, is the China impasse. Nvidia currently models for zero data centre revenue from China. US Senator Elizabeth Warren has given the company until June 18 to answer questions on export control compliance. Meanwhile, debt servicing costs — albeit at favourable rates — will remain fixed regardless of chip demand. Morgan Stanley expects $400 billion in bond issuance from cloud giants this year alone, a reminder that Nvidia is not the only company borrowing heavily to fund the AI buildout.
The $4.88 billion SharonAI deal and the $25 billion bond raise together tell a story of aggressive expansion financed through balance-sheet ingenuity. The $50 billion China question, however, remains unanswered.
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