Advanced Micro Devices Inc (NASDAQ: AMD) plans to raise as much as $5 billion through what could become its largest-ever U.S. dollar investment-grade bond sale. The offering aims to provide funding flexibility for the chipmaker’s expanding AI-related investments and management of upcoming debt maturities.

AMD is offering bonds across four tranches with maturities ranging from three to 10 years. The company has not finalized the offering size, which may adjust based on investor demand. Barclays, Bank of America, Citigroup, JPMorgan, Morgan Stanley, and Wells Fargo are managing the transaction.

Strategic Funding for AI Growth

The fundraising aligns with AMD’s increased spending to meet rising demand for AI computing capacity. The chipmaker recently secured agreements with Anthropic and Microsoft Corp (NASDAQ: MSFT) to broaden the use of its AI chips. Under the Anthropic deal, AMD committed to investing as much as $5 billion in the Claude chatbot developer.

AMD also expects deployments through Microsoft Azure, Oracle Corporation Cloud Infrastructure, and other cloud providers. Additionally, the company has secured 1-gigawatt commitments from OpenAI and Meta Platforms, Inc (NASDAQ: META), while Anthropic has committed to 1 gigawatt with an ambition to reach 2 gigawatts.

AMD stated in a filing that proceeds from the bond sale will be used for general corporate purposes, which may include repaying debt. The company has $875 million of bonds maturing next month.

Balance Sheet Position

As of June 27, 2026, AMD held $5.09 billion in cash and cash equivalents and $8.03 billion in short-term investments. This liquidity position provides a buffer against the new debt issuance.

In March 2025, the company raised $1.5 billion through a two-part bond sale. The planned $5 billion transaction would significantly exceed this previous high-grade bond issuance.

What the Numbers Show

AMD’s total liquid assets of $13.12 billion (cash plus short-term investments) substantially exceed the maximum planned bond issuance of $5 billion. This indicates that while the company is tapping debt markets for strategic flexibility and specific large-scale commitments like the $5 billion investment in Anthropic, it retains significant existing liquidity to cover near-term obligations, including the $875 million debt maturity.

Product and Market Outlook

AMD expects its server business to grow more than 80% in the second half of 2026 and at least 70% in 2027. Its broader data center business, including AI, could grow well above 100% next year.

The company aims to capture more than 50% of a server CPU market it estimates will reach $220 billion by 2030. Agentic computing accounts for roughly two-thirds of this opportunity. AMD plans to challenge NVIDIA Corp (NASDAQ: NVDA) by scaling its Helios AI racks, expanding its Venice server CPU lineup, and improving ROCm software.

AMD plans to begin shipping components for its Helios AI racks in September and expects a significant revenue ramp in the fourth quarter, followed by another increase in the first quarter. Management noted that early 2027 server revenue outlook is roughly 20% larger than the entire server market was in 2025, underscoring the scale of expected growth.

AMD views supply, rather than demand, as its main near-term constraint. It is working with Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) and other partners to secure additional manufacturing, packaging, and memory capacity.

Advanced Micro Devices shares were up 0.52% at $485.50 during premarket trading on Friday, according to Benzinga Pro data. Nasdaq futures were up 0.27% while S&P 500 futures gained 0.10%.

Advanced Micro Devices, Inc. (NASDAQ: AMD) signaled a significant acceleration in its data center strategy, projecting that its early 2027 server revenue outlook is already roughly 20% larger than the entire server market was in 2025. The company expects server revenue growth to exceed 80% in the second half of 2026 and at least 70% in 2027. Its broader data center business, including artificial intelligence, is expected to grow well above 100% in 2027.

Server And AI Growth Outlook Accelerates

Matt Ramsay, Corporate Vice President of Financial Strategy and Investor Relations at AMD, noted that the company’s server business grew more than 50% in the first quarter and more than 70% in the second quarter. Both cloud and enterprise revenue increased more than 70% during this period.

The company raised its estimate for the server CPU market to $220 billion by 2030 and continues to target more than 50% revenue share. Ramsay indicated that agentic computing could account for roughly two-thirds of the market as AI spending shifts from training to inference.

Helios Anchors AMD's AI Expansion

AMD plans to begin shipping components for its Helios AI racks to manufacturing partners in September. These components include MI450 accelerators, Venice CPUs, and Pensando networking products. Management expects a significant revenue ramp in the fourth quarter, followed by another increase in the first quarter.

Customer commitments provide visibility into this expansion:

• OpenAI and Meta Platforms, Inc. (NASDAQ: META) have secured 1-gigawatt commitments each.
• Anthropic has committed to 1 gigawatt, with an ambition to reach 2 gigawatts.
• Deployments are also expected through Oracle Corporation (NYSE: ORCL) Cloud Infrastructure and Microsoft Corporation (NASDAQ: MSFT) Azure.

Ramsay stated that while customer demand remains strong, deployment speeds will depend on the availability of land, power, infrastructure, and capital.

ZT Systems Supports Rack-Scale Push

AMD acquired ZT Systems to add system-level expertise as it expands beyond individual chips into complete rack-scale AI systems. Ramsay said ZT Systems has helped strengthen the Helios design and reduce execution risks. The company plans to begin the Helios ramp with a limited number of manufacturing partners before expanding more broadly.

AMD Says ROCm Is Closing The Software Gap

AMD highlighted progress with ROCm, its AI software platform, as it competes with NVIDIA Corporation's (NASDAQ: NVDA) CUDA ecosystem. Ramsay said improvements over the past 18 months have reduced friction for large customers, narrowing the competitive gap enough that software is no longer a central concern in discussions with leading AI companies.

Venice Expands AMD's CPU Roadmap

AMD is sampling its next-generation Venice server CPUs to customers. Venice scales to 256 cores and 512 threads and targets workloads ranging from traditional cloud computing to AI infrastructure and agentic systems. The company plans to follow Venice with its Florence CPU family in 2028.

What the Numbers Show

The divergence between AMD’s projected 2027 server revenue and the total 2025 market size underscores a fundamental shift in market dynamics. With the 2027 outlook being 20% larger than the entire 2025 market, AMD’s growth assumptions rely not just on gaining share but on a massive expansion of the total addressable market, driven largely by the transition to agentic computing which management estimates could comprise two-thirds of future demand.

Supply Remains The Key Constraint

AMD identified supply as its biggest near-term challenge rather than demand. The company continues to work with Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), where it ranks among the largest customers. AMD has also announced a $10 billion investment in Taiwan's technology ecosystem, largely focused on back-end capacity. The company is working with partners to secure sufficient memory supply.