If we were to speculate where AMD can put $4.75 billion, then long-term supply agreements for commodities like memory, logic production, or advanced packaging immediately come to mind. However, given the current market realities, $4.75 billion is 1.8x smaller than AMD's inventories as of late Q2 2026. Furthermore, an average long-term supply deal with a major memory maker now amounts to $7.14 billion (according to Micron's comments made in its recent earnings release ).
That said, $4.75 billion may not be enough for AMD to make strategically important purchase commitments. Nonetheless, getting nearly $5 billion at attractive rates amid global undersupply of pretty much everything certainly gives AMD some additional flexibility to run its business.
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Anton Shilov is a contributing writer at Tom\u2019s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends. ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-25/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Anton Shilov Social Links Navigation Contributing Writer Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
scottslayer At least its not asking for a HALF TRILLION backstop like Nvidia YET Reply
watzupken In AMD's latest earnings, it is clear that they are running out of cash on hand. All the CapEx spending and giving of money to the big AI companies is drying up their free cash flows. Hence, all the hardware companies are out in force to borrow more. Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/pc-components/cpus/SPONSORED_LINK_URL
- https://www.tomshardware.com/pc-components/cpus/amd-borrows-usd4-75-billion-for-general-corporate-purposes-company-gives-no-insight-into-how-it-plans-to-spend-cash-injection#main
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