On August 13, 2026, Advanced Micro Devices, Inc. (NASDAQ:AMD) launched a four-part bond offering that could raise between $4 billion and $5 billion. The firm joined a broader wave of tech-sector fundraising for AI investment just days after rival Intel Corporation (NASDAQ:INTC) raised $20 billion in an upsized stock offering.
Why This Matters
Both chip rivals went to capital markets within the same week to fund AI-related spending, but through very different instruments: debt for AMD, new stock for Intel. Does AMD’s debt strategy protect current shareholders better than Intel’s stock sales, or does it add too much financial risk during an expensive expansion?
AMD Issues $4.75 Billion Bond Sale to Drive Data Center Push
The offering includes notes due in 2029, 2031, 2033, and 2036, priced at spreads as tight as 70 basis points over Treasuries for the shortest tranche, showing strong investor demand. An Advanced Micro Devices, Inc. (NASDAQ:AMD) spokesperson said the company remains “committed to maintaining its strong financial balance sheet.” AMD forecast third-quarter revenue above Wall Street estimates earlier this month, saying data center sales would more than double by 2027.
Borrowing $4 billion to $5 billion adds extra financial risk when AMD is already spending heavily to grow its AI business. Unlike Intel Corporation (NASDAQ:INTC)’s stock sale, this debt eventually has to be repaid regardless of how the AI bet performs. Proceeds are set aside for “general corporate purposes,” a less clear use of funds than a specific capacity expansion plan.
Intel Raises $20 Billion in Upsized Stock Sale to Fuel AI Silicon Buildout
Intel Corporation (NASDAQ:INTC)’s $20 billion offering, upsized from an initial $15 billion, is priced at $95 a share. It is expected to raise $19.7 billion in net proceeds, funding capital expenditures tied to physical AI custom silicon and advanced packaging. As of August 13, Intel shares have surged over 165% in 2026 and quintupled over the past year, backed by the AI buildout and a 10% US government equity stake.
Unlike Advanced Micro Devices, Inc. (NASDAQ:AMD)’s debt raise, Intel’s stock offering dilutes existing shareholders. CFO David Zinsner has already flagged a “meaningful increase” in spending expected in 2027. It means this $20 billion raise likely would not be Intel’s last capital call.
Insider Monkey’s Hedge Fund Data
Advanced Micro Devices, Inc. (NASDAQ:AMD) was held by 134 hedge funds as of Q1 2026, up from 132. Intel Corporation (NASDAQ:INTC) was held by 112, up from 96. Nvidia, the larger rival both companies compete against, was held by 275.
Conclusion
AMD chose to protect its equity holders at the cost of new debt, while Intel picked the opposite path. Both bets will be judged by how much AI revenue actually shows up to justify them.
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Disclosure: None. This article is originally published at Insider Monkey.
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