AMD Launches $4bn–$5bn Debt Offering to Fund AI Expansion
The chipmaker’s four-part senior unsecured note sale, led by major global banks, underscores the sector’s reliance on debt financing to fuel artificial intelligence investments.
Advanced Micro Devices has initiated a four-part debt offering aimed at raising between $4 billion and $5 billion, as the semiconductor manufacturer seeks to secure funding flexibility for its expanding artificial intelligence operations. The chipmaker intends to utilise the proceeds for general corporate purposes, which may include the repayment of existing debt, while maintaining its strong investment-grade ratings.
The offering comprises senior unsecured notes due in 2029, 2031, 2033, and 2036, with settlement expected on 17 August. Initial price discussions for the tranches have been set at approximately 70 basis points over U.S. Treasuries for the three-year notes, 90 basis points for the five-year tranche, 100 basis points for the seven-year notes, and 115 basis points for the 10-year debt.
Bank of America, JPMorgan, Barclays, and Wells Fargo are leading the sale of the bonds. The move highlights a broader trend within the technology sector, where semiconductor firms are increasingly turning to capital markets to finance artificial intelligence-related investments, data-centre expansion, and manufacturing projects.
This debt issuance follows recent significant fundraising activity by competitors, including Intel’s $20 billion upsized stock offering earlier this week to support its contract chipmaking ambitions. AMD competes directly with Nvidia in the AI and data-centre markets while challenging Intel across multiple processor segments.
The financing comes as AMD forecasts third-quarter revenue above Wall Street estimates and projects that data-centre sales will more than double by 2027. The company filed with the U.S. Securities and Exchange Commission on Thursday, although the initial filing did not disclose specific deal terms beyond the structure of the offering.
