Advanced Micro Devices launched a four-part debt offering this week expected to raise $4.75 billion in its largest U.S. dollar bond sale, pending settlement Aug. 17. The capital raise is intended for general corporate purposes, which may include investments in artificial intelligence and data center expansion or repayment of existing debt.
The offering includes senior unsecured notes across four tranches maturing in 2029, 2031, 2033 and 2036. Initial price discussions were set at specific spreads over U.S. Treasuries: 70 basis points 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.
"AMD is committed to maintaining its strong financial balance sheet and we have strong investment grade ratings," an AMD spokesperson said. "We intend to use net proceeds from the offering for general corporate purposes."
The debt sale comes as semiconductor manufacturers increasingly access capital markets to finance AI-related investments, expand data center infrastructure and support large-scale manufacturing projects. Earlier this week, Intel completed an upsized stock offering that raised $20 billion to help finance its ambitions in contract chipmaking.
AMD's offering coincides with its continued expansion in AI and data center segments, where it competes with Nvidia in AI chip development and challenges Intel across processor markets. Earlier this month, AMD projected third-quarter revenue above Wall Street estimates and forecast data center sales would more than double by 2027.
Bank of America, JPMorgan, Barclays and Wells Fargo are managing the offering, according to term sheets reviewed.
