AMD completes its largest bond issuance in history! $4.75 billion raised to support AI infrastructure expansion.

AMD completed a $4.75 billion bond issuance, setting a new record for the company's largest dollar bond financing. As demand for AI data centers continues to grow, chip companies are raising funds through capital markets to accelerate their investment in computing infrastructure.

According to Reuters, Advanced Micro Devices (AMD.O) launched a four-part dollar bond offering on Thursday and ultimately raised $4.75 billion, making it the largest dollar bond offering in the company's history.

This issuance includes senior unsecured notes maturing in 2029, 2031, 2033, and 2036. According to market sources, the 10-year bond was ultimately priced 90 basis points higher than U.S. Treasury bonds, narrowing the spread by approximately 25 basis points from the initial guidance, reflecting investor demand for AMD's creditworthiness.

AMD's latest funding round exceeded the lower end of the previously expected range of $4 billion to $5 billion, becoming a significant example of how the wave of investment in artificial intelligence has driven technology companies to expand their funding.

The company stated that the proceeds from the bond issuance will be used for general corporate purposes, which may include debt repayment. An AMD spokesperson said, "AMD is committed to maintaining a strong balance sheet and has a high investment-grade credit rating. We plan to use the net proceeds from this issuance for general corporate purposes."

The bond issuance was underwritten by institutions including Bank of America, JPMorgan Chase, Citigroup, Barclays, Morgan Stanley, and Wells Fargo. The bonds are expected to be settled on August 17.

AMD filed documents with the U.S. Securities and Exchange Commission earlier Thursday related to the offering, but the filing did not disclose specific transaction terms.

AI demand drives semiconductor companies to accelerate financing.

AMD's bond issuance comes against the backdrop of rapid growth in investment in artificial intelligence infrastructure. As companies increase their investment in AI model training, inference capabilities, and data center construction, chip manufacturers are increasingly using the capital market to raise funds.

AMD is currently expanding its artificial intelligence and data center businesses, competing with Nvidia (NVDA.O) in the field of AI acceleration chips, while continuing to compete with Intel (INTC.O) in the processor market.

This year, AMD has continued to expand the application scope of its AI chips. The company recently announced collaborations with companies such as Anthropic and Microsoft to promote the deployment of its AI chips in more artificial intelligence inference scenarios.

AMD plans to invest up to $5 billion in Anthropic, with the two companies collaborating on AI infrastructure. AMD is also partnering with Microsoft to deploy its Helios AI infrastructure platform on Azure cloud services to expand the use of AMD chips in enterprise AI applications.

Bloomberg's compilation of analyst forecasts indicates that AMD's revenue may grow by 47% this year, reaching over $51 billion. The market believes that increased demand for AI chips will be a key driver of the company's future revenue expansion.

The financing was not due to financial pressure, but rather to position ourselves ahead of the AI cycle.

This bond issuance by AMD does not indicate that the company is facing liquidity pressure. As of June 27, AMD held approximately $13.1 billion in cash and short-term investments, and the company also has a high investment-grade credit rating.

According to Bloomberg, AMD currently has $875 million in bonds maturing next month. The company stated that the funds raised may be used to repay debt and optimize its financial arrangements.

Semiconductor companies are locking in funds in advance through debt financing to meet the long-term capital needs of building AI infrastructure. Earlier this week, Intel raised $20 billion through an expanded stock offering to support the development of its wafer foundry business.

Compared to Intel's choice of equity financing, AMD's financing through the bond market avoids equity dilution while increasing its financial flexibility for future investments in AI chips, data centers, and manufacturing projects.

AMD's most recent foray into the investment-grade bond market was in March 2025, when it completed a $1.5 billion bond issuance. This $4.75 billion financing round represents a significant increase, indicating that companies across the AI industry chain are entering a phase of higher capital investment.

Earlier this month, after releasing its second-quarter earnings report, AMD stated that it expects third-quarter revenue to exceed Wall Street expectations and anticipates that data center business sales will more than double by 2027, indicating that market demand for AI-related chips remains strong.