Close on the heels of robust quarterly results, Graphics chip giant Nvidia Corp. NVDA filed an S-3 registration statement with the SEC for a mixed-shelf offering.

What happened: Based in Santa Clara, California, Nvidia plans to sell securities, including common stock, preferred stock, depositary stock representing preferred stock, debt instruments, warrants, stock purchase agreements and stock purchase units to raise a total of $10 billion.

See also: The best tech stocks right now

The company suggested the sale could be made from time to time, with terms to be determined at the time of the offer. The offering could include a specific security or a combination of them, he added.

Nvidia now has eight billion authorized shares and two million authorized preferred shares, with 2.47 billion common shares and no preferred shares outstanding.

The Company has not disclosed the purpose for the potential net proceeds from the offering, although it has stated that it would use the net proceeds as disclosed in the applicable prospectus supplement.

Why it matters: After two disappointing quarters in 2022 amid semiconductor inventory corrections, broader economic uncertainties, and the chip ban in China, Nvidia appears to be on the road to recovery, according to fourth-quarter results. This was underscored by the release of fourth quarter results and management’s comment on the conference call Nvidia plans to switch to artificial intelligence on a large scale.

After ending 2022 with a little more than 50% loss, shares of Nvidia rebounded and are up about 59% year-to-date.

Following Nvidia’s announcement regarding the offering, investors had a big day, assessing the potential need for additional funding. “I wonder if $NVDA’s $10bn mixed shelf will be filed with a view to possible mergers and acquisitions. They don’t need the money otherwise,” said a tech trader while sharing a screenshot of free cash flow for the company — both…