Advanced Micro Devices Inc (NASDAQ: AMD) shares ticked up nearly 1% in Friday's premarket session as investors digested the chipmaker's plan to raise a record $5 billion through a bond sale, a move aimed at fueling its aggressive AI and server expansion.
Nasdaq futures were up 0.27%, while S&P 500 futures gained 0.10%, reflecting a broadly positive market tone.
The bond raise, which AMD is pairing with an ambitious AI and server growth strategy, gives the company extra financial flexibility as it prepares to scale new products, meet major customer commitments, and accelerate data-center growth.
Plans Largest-Ever Dollar Bond Sale
AMD intends to raise up to $5 billion through a four-part investment-grade bond offering, with maturities ranging from three to ten years. The final size will depend on investor demand, but the planned offering would significantly exceed AMD's previous high-grade bond sale of $1.5 billion in March 2025.
The company said it may use the proceeds for general corporate purposes, including debt repayment. This move is a clear signal that AMD is betting big on its AI future and wants the financial firepower to back it up.
AI and Server Growth Outlook Accelerates
At its Technology Leadership Forum 2026, AMD projected server revenue to grow more than 80% in the second half of 2026 and at least 70% in 2027. The company expects its broader data-center business, including AI, to grow well above 100% next year.
AMD estimates the server CPU market will reach $220 billion by 2030 and continues to target more than 50% revenue share. Management also expects agentic computing to represent roughly two-thirds of that opportunity, as AI spending shifts increasingly toward inference.
Ramsay, an AMD executive, noted that the company's early 2027 server revenue outlook is roughly 20% larger than the entire server market was in 2025, underscoring the scale of the expected growth. That's a staggering comparison that puts AMD's ambitions into perspective.
Helios and Major Customers Support the Expansion
AMD plans to begin shipping components for its Helios AI racks in September, with a significant revenue ramp expected in the fourth quarter, followed by another increase in the first quarter. This timeline suggests the company is moving quickly to capitalize on the AI infrastructure boom.
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. These are massive commitments that underscore the demand for AMD's AI solutions.
AMD also expects deployments through Microsoft Corporation Azure, Oracle Corporation Cloud Infrastructure, and other cloud providers, further broadening its reach in the data-center market.
Price Action
Advanced Micro Devices shares were up 0.52% at $485.50 during premarket trading on Friday, according to market data. The stock's modest gain reflects investor optimism about the company's growth prospects, even as it takes on additional debt to fund its expansion.
