--- title: "Expanding the AI Race 'Arsenal'! AMD Reportedly Planning Largest Investment-Grade Bond Issuance, Raising Up to $5 Billion" type: "News" locale: "en" url: "https://longbridge.com/en/news/295827055.md" description: "According to reports, AMD is issuing four tranches of senior unsecured notes with maturities ranging from three to ten years, though the final fundraising scale has not yet been finalized. AMD stated that the proceeds will be used for general corporate purposes, including potential debt repayment. The company has an $875 million bond maturing in September" datetime: "2026-08-13T15:28:50.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295827055.md) - [en](https://longbridge.com/en/news/295827055.md) - [zh-HK](https://longbridge.com/zh-HK/news/295827055.md) --- # Expanding the AI Race 'Arsenal'! AMD Reportedly Planning Largest Investment-Grade Bond Issuance, Raising Up to $5 Billion As demand for AI computing power continues to surge, AMD is accelerating efforts to expand its financing "arsenal." On Thursday, the 13th (U.S. Eastern Time), Bloomberg reported that AMD plans to raise up to $5 billion by issuing U.S. dollar-denominated investment-grade bonds. Reuters subsequently reported that AMD aims to raise approximately $4 billion to $5 billion through this bond issuance. If confirmed, this would be the latest large-scale transaction in a wave of debt financing linked to the AI boom. If the issuance is completed at the maximum scale of $5 billion, it could become the largest U.S. dollar investment-grade bond issuance in AMD's history. Citing insiders, Bloomberg stated that AMD has not yet decided on the final issuance size, and the specific amount may still be adjusted based on market demand. This bond issuance comes as AMD increases investment to meet the computing power demands driven by the AI boom. AMD recently announced expanded collaborations with Anthropic and Microsoft, committing to invest up to $5 billion in Anthropic. In a filing submitted to the U.S. Securities and Exchange Commission (SEC) earlier on Thursday, AMD stated that the proceeds from the bond issuance would be used for general corporate purposes, which may include debt repayment. The company currently has $875 million in bonds maturing next month. ## Four Tranches of Senior Unsecured Notes, with Initial Spread of 115 Basis Points for the 10-Year Tenor According to Bloomberg, citing insiders, AMD's bond issuance will be divided into four tranches, with maturities ranging from three to ten years. Reuters disclosed that the issuance terms include senior unsecured notes maturing in 2029, 2031, 2033, and 2036, corresponding to tenors of approximately 3, 5, 7, and 10 years, respectively. Preliminary pricing guidance indicates that the spread over comparable U.S. Treasury yields is approximately 70 basis points for the 3-year note, 90 basis points for the 5-year note, 100 basis points for the 7-year note, and 115 basis points for the 10-year note. Bloomberg stated that the initial price guidance for the 10-year bond is approximately 1.15 percentage points higher than U.S. Treasury yields. These spreads remain preliminary price guidance, and the final financing cost will depend on market demand and order book conditions during the issuance process. Citing issuance terms, Reuters reported that the bonds are expected to settle on August 17. AMD also filed documents related to this bond issuance with the U.S. Securities and Exchange Commission (SEC) on Thursday, but the regulatory filings did not disclose the specific terms of the transaction. ## Final Scale Not Yet Finalized, Maximum Fundraising of $5 Billion The market currently describes this financing as "up to $5 billion," but AMD has not yet determined the final issuance size. Bloomberg reported that insiders revealed the final issuance size could change based on investor demand, meaning the $5 billion figure is currently closer to the potential upper limit of the transaction rather than a locked-in fundraising amount. The bond issuance is being managed by several major Wall Street investment banks. Bloomberg stated that Barclays, Bank of America, Citigroup, JPMorgan Chase, Morgan Stanley, and Wells Fargo are participating in managing the bond sale; Reuters, citing issuance terms, reported that Bank of America, JPMorgan Chase, Barclays, and Wells Fargo are serving as lead underwriters for this debt issuance. ## Proceeds for General Corporate Purposes, $875 Million Debt Maturing Next Month AMD stated in relevant documents that the proceeds from this bond issuance will be used for general corporate purposes, which may include repaying existing debt. AMD currently has an $875 million bond maturing in September of this year. Therefore, part of the funds from this issuance may be used to repay upcoming debt, while also optimizing the debt maturity structure by issuing longer-term bonds. However, in terms of overall corporate liquidity, AMD is not being forced into the bond market due to a cash shortage. The company previously disclosed that as of the end of the first quarter of this year, it held approximately $12.3 billion in cash, cash equivalents, and short-term investments, with total debt of approximately $3.2 billion. It also achieved approximately $3 billion in operating cash flow and approximately $2.6 billion in free cash flow during the quarter. Therefore, this issuance appears to be a proactive move by AMD to utilize the bond market to increase cash reserves and financing flexibility after entering a phase of large-scale expansion in its AI business. ## Surging AI Demand, AMD Increases Customer Collaborations The timing of AMD's bond issuance is particularly noteworthy. Bloomberg stated that AMD is increasing spending to meet the growth in computing power demand driven by the AI boom. The company recently announced new agreements with Anthropic and Microsoft, which will further expand the use of AMD AI chips. Among these, the scale of the collaboration with Anthropic is particularly attention-grabbing. AMD previously announced that Anthropic plans to deploy up to 2 gigawatts of AMD Instinct GPUs, with the first 1 gigawatt expected to be deployed starting in 2027. As part of the partnership, AMD also committed to investing up to **$5 billion** in Anthropic. In other words, AMD is locking in future demand through large-scale AI chip collaborations on one hand, while needing to invest funds to support customer ecosystems and its own AI business expansion on the other. From an industry perspective, AI data center investment is shifting from traditional single-unit GPU purchases to the deployment of hundreds of megawatts or even gigawatt-level computing infrastructure. Chip manufacturers need to invest more funds to expand R&D, supply chains, and production capabilities, while also strengthening the AI ecosystem through strategic investments, customer collaborations, and potential mergers and acquisitions. ## From Credit Facilities to Bond Issuance, AMD Continues to Expand Its "Arsenal" AMD has significantly strengthened its financing capabilities since the beginning of this year. In May this year, the company expanded its unsecured revolving credit facility to $5 billion and increased the maximum outstanding balance of its commercial paper program from $3 billion to **$5.5 billion**. Now, the company plans to issue up to $5 billion in senior unsecured notes. The continuous expansion of financing instruments with different tenors indicates that AMD is reserving greater financial space for AI business expansion in the coming years. Especially against the backdrop of NVIDIA continuing to dominate the AI accelerator market, and tech giants such as Microsoft, Meta, OpenAI, and Anthropic continuously expanding their computing power investments, AMD is attempting to increase its market share by leveraging its MI series GPUs and more comprehensive AI infrastructure solutions. This potentially record-breaking investment-grade bond issuance also makes AMD the latest chip company to make a significant entry into the debt market amid the AI capital expenditure boom. For AMD, the market's focus will next extend beyond the final fundraising scale and financing costs to include how much of the new funds will be used for debt repayment, and how much will be converted into "ammunition" for AI business expansion. ### Related Stocks - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [AMDD.US](https://longbridge.com/en/quote/AMDD.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [AMDG.US](https://longbridge.com/en/quote/AMDG.US.md) - [DAMD.US](https://longbridge.com/en/quote/DAMD.US.md) - [AMDY.US](https://longbridge.com/en/quote/AMDY.US.md) - [AMDW.US](https://longbridge.com/en/quote/AMDW.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [AMDS.US](https://longbridge.com/en/quote/AMDS.US.md) ## Related News & Research - [Anthropic’s Massive AI Buildout Is Another Bullish Signal for AMD Stock](https://longbridge.com/en/news/295700576.md) - [AMD Expands Local AI Capabilities With Muse Glimmer 30B Support](https://longbridge.com/en/news/295430590.md) - [Community Trust & Investment Co. 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