Advanced Micro Devices (AMD) priced a $4.75 billion bond offering on Monday, its largest-ever U.S. dollar bond financing, to fund its expansion in AI and data center markets. The stock closed at $514.13, up 6.5% on the day, and remains up roughly 130% year-to-date.
The debt deal is spread across four tranches maturing between 2029 and 2036. Part of the proceeds will cover $875 million in bonds maturing next month, and the company will use the funds to acquire ZT Systems, a top server industry company. The move follows AMD's Advancing AI event, where management lifted its projection for the total AI chips market to $1.4 trillion by 2030. AMD also announced day-one support for the Qwen3.8 27B AI model, which could improve adoption among AI developers and data center customers.
Technical analysts point to a rare bullish flag pattern and an inverted head-and-shoulders pattern on the AMD chart, with the stock trading above its 50-day and 100-day exponential moving averages. The next key target is the year-to-date high of $584; a move above that level could open the path toward $600.
AMD's latest earnings support the bullish case. Second-quarter revenue rose 50.1% year-over-year to $11.54 billion, beating the $11.31 billion consensus estimate. Data center revenue more than doubled to $6.7 billion, with segment operating income up 1,457%. The company guided for third-quarter revenue of $13 billion, plus or minus $300 million.
Wall Street sentiment is mostly positive. Baird set a price target of $1,250, Jefferies set $650, and Argus raised its target to $625 with a buy rating. Bank of America also raised its 2030 server CPU market forecast to over $210 billion from $170 billion, naming AMD a preferred semiconductor pick. The consensus rating is Moderate Buy with an average price target of $546.87.
Still, valuation concerns persist. AMD trades at a forward non-GAAP price-to-earnings ratio of 68, well above the technology sector median of 24 and above Nvidia's forward P/E of 25. SpaceX reportedly plans to use Nvidia chips exclusively, cutting AMD out of that opportunity, while insider selling has continued under prearranged Rule 10b5-1 plans. Institutional investors own 71.34% of AMD stock.
