The surge in AI computing power demand drives capital investment, AMD completes the largest dollar bond issuance in history, raising $4.75 billion

According to Zhitong Finance APP, Advanced Micro Devices, Inc. (AMD.US) has completed the largest dollar bond issuance in the company's history, raising a total of $4.75 billion. As the artificial intelligence (AI) boom drives rapid growth in global computing power demand, AMD is continuously expanding its related investments, and this bond issuance has become the latest case of technology companies engaging in large-scale financing around AI infrastructure.

According to informed sources, AMD issued four tranches of investment-grade bonds, with maturities ranging from 3 to 10 years. The longest-maturity bond was ultimately priced 90 basis points higher than U.S. Treasury yields, narrowing about 25 basis points from the initial pricing guidance, indicating strong demand from investors for this bond.

This financing comes as AMD accelerates its investments related to AI. In recent years, the rapid development of generative AI has led to a continuous increase in demand for data center computing power from large technology companies. AMD is also actively expanding its market coverage for AI chips and is attempting to further challenge NVIDIA's (NVDA.US) leading position in the AI accelerator market.

Recently, AMD has reached agreements with Anthropic and Microsoft (MSFT.US) to expand the application scale of its chips. According to analyst forecasts compiled by Bloomberg, driven by AI demand and other factors, AMD's revenue is expected to grow by 47% this year, surpassing $51 billion.

Among these, the collaboration between AMD and Claude chatbot developer Anthropic is particularly noteworthy. As part of the agreement, AMD has committed to invest up to $5 billion in Anthropic, further deepening the cooperation between the two parties in the fields of AI chips and computing power infrastructure.

According to documents submitted by AMD, the funds raised from this bond issuance will be used for general corporate purposes, which may include repaying existing debt. AMD currently has $875 million in bonds maturing next month, so this financing also provides the company with more ample funding arrangement space.

Despite its significant entry into the bond market, AMD's overall balance sheet remains relatively robust. As of June 27, the company's debt stood at approximately $3.2 billion, while cash and short-term investments reached $13.1 billion. An AMD spokesperson stated that the company remains committed to maintaining a strong financial position but did not disclose further details on the specific funding arrangements for this financing.

JP Morgan, Citigroup, and Bank of America participated in this bond issuance, with Barclays, Morgan Stanley, and Wells Fargo also involved.

It is worth noting that AMD's previous entry into the investment-grade bond market was in March 2025, when the financing scale was $1.5 billion. This $4.75 billion issuance exceeds the previous level, making it AMD's largest dollar bond financing to date.

This year, the AI investment boom is driving a continuous increase in financing demand from U.S. technology companies. As capital expenditures for chips, data centers, power, and other AI infrastructure continue to expand, issuers, including large technology companies and semiconductor firms, are increasingly utilizing the bond market to raise funds. AMD's record bond issuance further demonstrates that, against the backdrop of sustained strong demand for AI computing power, related companies are providing funding support for a new round of capital investment through external financing