AMD restructured another $450 million of its high-interest debt into low-interest convertible senior notes. While this significantly reduced AMD’s interest burden, it brought the potential for further dilution of shares.

If the shares reach the price at which buyers can convert their debt into stock, another $450 million would be wiped out from AMD’s debt but the equity portion would increase.

This financial revamp has put AMD in a better position to compete with its cash-rich rivals and has also eliminated the risk of bankruptcy. On September 13, 2016, Deutsche Bank said, “AMD benefits from interest savings and pushes out the maturity of the next tranche of debt to 2022; however, it also dilutes its current shareholders by as much as ~30% between the new equity/convertible and the recently-issued warrants to Mubadala.”

Continue to the next part for a look at the factors that have fared well for AMD in the GPU market.