Advanced Micro Devices (NASDAQ: AMD) is seeking to raise between $4 billion and $5 billion through a new bond offering, with the company indicating the proceeds may be used for general corporate purposes, including debt repayment.

The financing comes ahead of an existing $875 million bond maturity scheduled for next month. AMD has not made a final decision on the size of the new offering, and the amount could change based on investor demand, according to people familiar with the matter. AMD has also recently expanded its commitments in artificial intelligence through agreements with Anthropic and Microsoft. Those arrangements are intended to increase the use of AMD's AI chips.

Under its agreement with Anthropic, AMD has committed to invest as much as $5 billion in the company behind the Claude chatbot.

The proposed debt sale is divided into four portions with maturities of 3, 5, 7 and 10 years, according to a person familiar with the transaction. Preliminary pricing for the 10-year notes indicated a yield spread of 1.15 percentage points above U.S. Treasuries.

If the offering reaches the upper end of the contemplated range, it would represent AMD's largest investment-grade bond sale.

About Advanced Micro Devices

Advanced Micro Devices (NASDAQ: AMD) was founded in 1969 and is headquartered in Santa Clara, California. The semiconductor company develops processors, graphics products and computing technologies used across data centers, personal computers, gaming and embedded markets.

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.