Growth prospects have been significantly reduced by analysts, driven by a saturation of the graphics processor market and a bottleneck effect surrounding the construction of new data centers.

In this respect, the chip designer led by Jensen Huang has fallen back to a multiple of 20x its expected earnings for the current fiscal year, a level not seen since January 2019 and the beginning of its meteoric stockmarket ascent.

The other surprise is yesterday's announcement of a $20bn debt increase at a very low cost: specifically, with a negligible risk premium over the 10-year rate: featuring a maturity schedule spread out until 2056.

For institutional investors and pension funds, this provides yields comparable to long-term rates without exposure to the fiscal irresponsibility of the US Treasury. Unsurprisingly, demand was very strong, and the issue was four times over subscribed to.

Of course, the move might raise a few eyebrows. It is one thing for Google or Meta to tap the capital markets because their free cash flows have suddenly dried up following record investment programs in computing capacity.

However, for Nvidia to seemingly do the same when, in theory, it has little need to do so: as a "picks and shovels" provider carrying $80bn in excess cash on its balance sheet and generating $46bn in free cash flow in H1: was unexpected.

With such a valuation, and in a market environment that remains extremely favorable: as evidenced again yesterday by the enthusiasm surrounding the SpaceX IPO: Nvidia likely believes, rightly so, that it is opportunistic to further bolster this war chest with additional low-cost capital.

This is especially true given that the group, as is well known, has planned a massive share buyback program for the current fiscal year, with an authorization of nearly $120bn that will likely be fully utilized if its stock valuation continues to decline.

It is remarkable to note that while the big names in American technology are all engaged in an "arms race" and vast expansion programs, Nvidia, by contrast, plans to cannibalize itself with an intensity unprecedented in the history of public companies.