Advanced Micro Devices, Inc (NASDAQ:AMD) plans to raise as much as $5 billion through what could become its largest-ever U.S. dollar investment-grade bond sale, giving the chipmaker additional funding flexibility as it expands AI-related investments and manages upcoming debt maturities.
AMD Taps Debt Market to Support AI Expansion
AMD is offering bonds across four tranches with maturities ranging from three to 10 years, Bloomberg reported on Thursday, citing people familiar with the matter. The company has not made a final decision on the offering size, which could change depending on investor demand.
The fundraising comes as AMD increases spending to meet rising demand for AI computing capacity.
The chipmaker recently struck agreements with Anthropic and Microsoft Corp (NASDAQ:MSFT) that will broaden the use of its AI chips. As part of its Anthropic agreement, AMD has committed to invest as much as $5 billion in the Claude chatbot developer.
AMD said in a filing that it plans to use proceeds from the bond sale for general corporate purposes, which may include repaying debt. The company has $875 million of bonds maturing next month.
The planned transaction would significantly exceed AMD’s previous high-grade bond issuance.
AMD held $5.09 billion in cash and cash equivalents and $8.03 billion in short-term investments as of June 27, 2026.
In March 2025, the company raised $1.5 billion through a two-part bond sale.
Barclays, Bank of America, Citigroup, JPMorgan, Morgan Stanley and Wells Fargo are managing the current offering.
AMD is sharpening its AI and server strategy around faster growth, broader product offerings and software improvements as it seeks to take share from Nvidia and other processor rivals.
AMD Bets on Helios, Venice and ROCm to Drive Growth
AMD expects its server business to grow more than 80% in the second half of 2026 and at least 70% in 2027, while its broader data center business, including AI, could grow well above 100% next year.
The company aims to capture more than 50% of a server CPU market it estimates will reach $220 billion by 2030, with agentic computing accounting for roughly two-thirds of the opportunity.
AMD plans to challenge NVIDIA Corp (NASDAQ:NVDA) and other rivals by scaling its Helios AI racks, expanding its Venice server CPU lineup and improving ROCm to narrow the software gap with Nvidia’s CUDA ecosystem.
It also plans to compete with x86 and Arm Holdings plc (NASDAQ:ARM)-based processors by emphasizing workload-specific performance, security, reliability and flexible chiplet-based designs.
AMD sees supply, rather than demand, as its main near-term constraint and is working with Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) and other partners to secure additional manufacturing, packaging and memory capacity.
AMD Price Action: Advanced Micro Devices shares were up 2.02% at $492.69 at the time of publication on Thursday, according to Benzinga Pro data.
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