AMD Launches $4-5 Billion Bond Sale to Accelerate AI and Data-Center Expansion

AMD Launches $4-5 Billion Bond Sale to Support AI and Data-Center Expansion

AMD has launched a four-part senior unsecured debt offering expected to raise between $4 billion and $5 billion. The transaction arrives as semiconductor companies commit substantial capital to AI accelerators, data-center infrastructure and long-term supply agreements. The proposed notes mature in 2029, 2031, 2033 and 2036. Initial price discussions reportedly placed the four tranches approximately 70, 90, 100 and 115 basis points above comparable US Treasury securities. AMD says the proceeds will support general corporate purposes, which may include repaying existing debt. The wording provides flexibility rather than identifying one acquisition, manufacturing agreement or product program as the sole beneficiary. Bank of America, JPMorgan, Barclays and Wells Fargo are leading the transaction, with settlement expected on August 17. AMD has indicated that it intends to preserve an investment-grade credit profile. The financing does not mean AMD is building its own leading-edge fabrication facilities. The company remains dependent on external manufacturing and packaging partners, particularly TSMC, but must still finance wafer commitments, accelerator systems, software development and customer deployments. The scale is significant beside ordinary PC-product investments. It reflects the capital intensity of competing with NVIDIA in complete AI infrastructure rather than merely designing individual processors. AMD's Instinct accelerator roadmap, EPYC server processors and associated networking and software require spending well before the related revenue is collected. For PC enthusiasts, the immediate effect is indirect. Stronger data-center investment can fund future architectures, but AI products also compete for advanced packaging, wafers and engineering resources used by client CPUs and GPUs. AMD debt offeringReported detail Expected proceeds$4-5 billion StructureFour-part senior unsecured note offering Maturities2029, 2031, 2033 and 2036 Initial spreadsApproximately 70-115 basis points over Treasuries Stated useGeneral corporate purposes, potentially including debt repayment Source: Reuters

AMD Prepares Record $5B Bond Sale to Fuel Massive AI Expansion - Advanced Micro Devices (NASDAQ:AMD)

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. 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 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. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

AMD targets up to $5bn in the bond market

The semiconductor maker plans to use the proceeds for general corporate purposes, including the possible repayment of certain debt, while highlighting the strength of its balance sheet and its investment-grade ratings. Bank of America, JPMorgan, Barclays and Wells Fargo are leading the offering, which has also been filed with the SEC. The transaction comes as technology groups tap capital markets more heavily to fund investments in artificial intelligence, data centers and manufacturing capacity. AMD is also continuing to expand in chips for AI and data centers, competing in particular with Nvidia and Intel. The company recently issued third-quarter revenue guidance above Wall Street expectations and expects its data center sales to more than double by 2027. In a similar financing move across the sector, Intel raised $20bn this week through a share offering to support, among other things, its ambitions in making chips for third-party customers.