AMD Just Borrowed $4.75 Billion, More Than Triple Its Last Bond Sale

AMD closed a $4.75 billion bond offering, its largest debt issuance on record and more than triple the size of its previous sale. The chipmaker structured the deal across four tranches with maturities spanning 2029 to 2036, locking in rates around 5%.

The company is deploying proceeds to fund AI infrastructure buildout and capacity expansion despite sitting on $13.1 billion in cash and generating strong operating cash flow. AMD's data center segment is driving rapid growth—revenue climbed 50% year-over-year in Q2—making the debt load manageable against current fundamentals.

The bond sale reflects management's confidence in sustaining high growth, but the stock already trades at 130 times earnings, embedding expectations for multi-year expansion. Any stumble in AI demand or data center momentum could pressure shares given the elevated multiple and now-increased debt load.