Prices of the computer chip maker's bonds have risen 14 per cent since mid-January, but the buyers are underestimating problems at the company, according to Robert Lee, a bond analyst at KDP Investment Advisors, including its record $US5 billion ($5.2 billion) in debt, six straight quarterly losses and spending on plants and equipment it can't afford. Chief executive Hector Ruiz, after a year of searching for a way out of the company's cash squeeze, has few options left, given the weakness in AMD stock and credit market tightening. He may have to offer a large stake to an outsider, which at today's prices would be worth 33 per cent less than at the beginning of the year. Or Ruiz might sell AMD's two factories and outsource production.