Intel Upsizes Stock Sale to $20 Billion as AI Chip Manufacturing Demand Surges

Intel investors are banking on a comeback -- and then some

The spillover of AI mania has transformed demand and pricing When is a good time for a company to raise equity? When its shares are expensive, according to financial lore. Intel, which said on Monday that it would issue at least $15bn of new stock, is following that rule to the letter. Its shares trade at nearly 55 times forecast earnings for the coming year, according to LSEG data -- higher than at their peak before the 2000 tech crash. The question is who would buy at such a price. True, this is not the Intel of old. The US chipmaker, once an industrial icon known to households for its "Intel inside" slogan, endured years of dashed hopes and wasted investment. Under the leadership of Lip-Bu Tan, who replaced the Pollyanna-ish Pat Gelsinger in March 2025, the company has cut headcount by a fifth, sold stakes in subsidiaries, trumpeted an alliance with Elon Musk's Tesla and -- until recently -- reined in capital expenditure. Intel has been helped by trends unrelated to Tan's stewardship. The spillover of AI mania, from high-end GPU chips into the CPUs that Intel makes for servers and data centres, has transformed demand and pricing. Rival AMD said recently that it thinks the market for such chips could be $220bn by 2030; a few months earlier it had forecast roughly half that. Tan is not saying where the new fund will be spent. But among his brood of divisions, Intel's foundry is the hungriest. The goal is to grow orders to make and package other companies' chips, a business that brought in just $307mn of outside revenue last year. Some analysts -- including those at Intel bookrunner Goldman Sachs -- think that could top $20bn by 2030. Getting there means reopening the cheque book: Bernstein analysts predict capital expenditure will hit a record $26bn in 2027. This is, in one sense, going back to the future. Gelsinger wanted to bring in $15bn of external foundry revenue by 2030, and threw lashings of investment at his target. Tan's odds are better. Global chip shortages aside, Intel's shareholders now include chip giant Nvidia and the US government. While not a guarantee of business, that gives companies such as Apple and the so-called AI hyperscalers a gentle shove in Intel's direction. Nonetheless, investors are buying into the $15bn capital raise with some generous assumptions. Imagine Intel hits Goldman's foundry revenue estimate by 2030, that the company's data centre business triples by then, and that PCs return to their peak revenue from 2021. That would total $120bn of sales. Apply a hypothetical 40 per cent operating margin, which Gelsinger hoped to achieve for the non-foundry business by the end of the decade, tax it, and it suggests earnings of around $40bn. In that happy scenario, Intel's current market capitalisation of about $500bn would equate to more than 12 times 2030 earnings, roughly where Taiwanese chip colossus TSMC and larger rival AMD trade, according to Visible Alpha. Those are challenging comparisons. Tan's task now is to make Intel's insides match its highly valued outside.

Intel plans $15 billion stock offering as AI demand accelerates

Intel announced a $15 billion common stock offering on Monday to support skyrocketing customer demand for artificial intelligence compute. The chipmaker highlighted physical AI, purpose-built silicon and advance packaging among the major growth opportunities and said it will use the funding to support corporate needs, including capital expenditures and working capital, Technology giants have shelled out trillions in recent years to meet insatiable AI demand and the unrelenting infrastructure buildout to support new compute capacity. Several megacap tech companies boosted their capital expenditures on AI demand this earnings season, with spending on track to hit $765 billion this year and $1.2 trillion in 2027, according to estimates from Goldman Sachs. Amazon gave the highest guidance among the group this reporting period, citing the memory crunch. The Intel announcement includes a 30-day option that would allow underwriters to buy an additional $2.25 billion in common stock.

Intel upsizes stock offering to $20 billion for AI chip manufacturing

The chipmaker priced 210 million shares at $95 each, up from a $15 billion offering announced the day before Intel $INTC upsized its previously announced common stock offering to $20 billion on Tuesday, pricing 210,526,315 shares at $95 per share as it looks to fund expansion of its chip contract manufacturing business. The offering was increased from the $15 billion target Intel had announced on Monday. The deal is expected to close on August 12, the company said, and is expected to generate net proceeds of approximately $19.7 billion after underwriting discounts, commissions, and estimated offering expenses. Intel has also granted underwriters a 30-day option to purchase up to 31,578,947 additional shares at the offering price. Intel stated that proceeds will go toward general corporate purposes, a category the company said could encompass capital expenditures and working capital needs. J.P. Morgan, Goldman Sachs $GS & Co. LLC, Morgan Stanley $MS, and Citigroup $C are acting as joint book-running managers. Intel's shares dropped more than 4% on Monday after the company revealed the initial offering, according to CNBC. The $95 per share offering price represented a discount of 2.6% from the previous close, according to Reuters. Intel has been investing to compete in contract chip manufacturing while demand for its central processing units has outpaced available manufacturing capacity. In July, Intel revised its 2026 capital expenditure target upward to $20 billion from $18 billion, and the company has committed to achieving high-volume production with its 14A process node by 2028. Tesla $TSLA has signed on as a customer for the 14A process through Intel's foundry division. Last month Intel disclosed plans to pour €5 billion ($5.77 billion) into its Irish chip manufacturing operations as part of a broad capacity expansion effort, according to Reuters. Chief Financial Officer David Zinsner said at the time that the company's supply could not keep pace with customer demand. Intel's share price is up 175% so far in 2026 and has gained roughly five times its value compared with a year ago, according to CNBC. Analysts had widely noted that Intel's climbing valuation made some form of equity issuance increasingly probable as a means of financing its growth ambitions. "As a capital-intensive business that went a long way to wrecking its own balance sheet and prospects by focusing on financial engineering rather than physical engineering, courtesy of $82 billion of share buybacks in the 2010s, it makes perfect sense for Intel to raise money, especially after a five-fold increase in the stock price since last August," Russ Mould, investment director at AJ Bell, said.

Intel to launch $15B stock sale amid AI boom, advanced packaging demand

Intel Corp. today announced plans to raise $15 billion by selling common stock. The banks underwriting the deal have the option to buy up to $2.25 billion worth of additional shares within 30 days. The offering follows a year in which Intel's stock price more than tripled. That increase reflects investor optimism about its data center and artificial intelligence business, which saw revenues jump 59% last quarter. Intel didn't provide a detailed overview of how it plans to spend the funds. The company only stated that its plans "may include, but are not limited to, capital expenditures and working capital." Last month, Intel boosted its capital expenditure forecast for the year from $18 billion to over $20 billion. Chief Financial Officer David Zinsner stated at the time that the company expects additional increases in 2027. He added that the bulk of the capital will go towards chipmaking equipment. One section of Intel's brief stock sale announcement is titled "Why Now." It states that "physical AI, purpose-built silicon, advanced packaging and external wafers represent significant growth opportunities for Intel." That may provide clues about how it intends to spend the proceeds from the offering. Advanced packaging, one of the technologies that Intel listed as a growth opportunity, is used to link together multiple silicon dies into a single chip. The technology can be found in, among other products, AI accelerators. It connects graphics cards' logic circuits to the HBM memory stacks in which they keep data. In March, Zinsner stated that Intel was close to inking advanced packaging deals worth billions of dollars annually. The company may seek to boost its advancing packaging production capacity to meet an expected increase in demand. Its stock sale could make it easier to finance such an initiative. Today, Intel mainly makes advanced packaging at a New Mexico facility called Fab 9. In 2021, it committed $3.5 billion to upgrading the factory's production lines. More recently, the company added three new products to its advanced packaging lineup. One of the new offerings is a technology called EMIB-T that is expected to enter production this year. Chipmakers often link together a processor's modules by placing them on a shared base layer called an interposer. EMIB-T replaces the interposer with a smaller, less expensive interconnect. Additionally, it includes power delivery wires that shorten the path electricity must travel and thereby boosts chip efficiency. Advanced packaging isn't the only focus of Intel's engineering efforts. Last month, the company disclosed that it had started mass producing chips using ASML Holdings NV's newest High NA lithography equipment. High NA machines shine light onto silicon wafers at different angles than earlier hardware. That change makes it possible to etch smaller, more efficient transistors. Now that Intel has validated ASML's High NA hardware in production, it may seek to bring the technology to more fabs. The stock sale announced today could be conducive to that effort. A single High NA machine cost $400 million as of May 2025.

Intel Slips After Chipmaker Announces $15 Billion Stock Sale

Get personalized, AI-powered answers built on 27+ years of trusted expertise. Intel shares fell Monday after the chipmaker announced plans to issue $15 billion of stock to meet booming demand for AI-enabling semiconductors. "Customers continue to signal a strong and sustainable demand environment, driven by unprecedented investment in AI compute," the company said in a regulatory filing announcing the sale. Intel intends to use proceeds from the sale for general corporate purposes, which may include capital expenditures to pursue growth opportunities including "physical AI, purpose-built silicon, advanced packaging and external wafers." Intel's (INTC) stock finished Monday down more than 4%. It remains up more than 160% in 2026. Tech companies are spending hundreds of billions annually on AI infrastructure, primarily the graphics processing units (GPUs) designed by Nvidia (NVDA), but also competing offerings from the likes of Broadcom (AVGO) and Advanced Micro Devices (AMD). Intel last month posted its fastest revenue growth in 15 years amid booming demand for AI computing power. Insatiable demand for processors has boosted sales and profits at chipmakers and led them to increase their investments in manufacturing capacity. Taiwan Semiconductor Manufacturing Co. (TSM), the world's largest chipmaker, last month raised its full-year capital expenditure forecast to between $60 billion and $64 billion after reporting record quarterly revenue. Intel, the only U.S.-domiciled chipmaker with a significant manufacturing footprint, also raised its capex guidance. Intel was one of the best-performing stocks in the S&P 500 in the first half of 2026. Shares rose as much as 280% as investors saw demand for non-GPU AI chips pick up. The stock also got a boost from buzz about potential chip manufacturing deals with tech giants like Apple (AAPL) and the Trump administration's financial support for America's leading chipmaker. Intel, like other chip stocks, has cooled off in the past month.

Intel's $15 billion stock sale. Why shares fell despite AI boom - Intel announces $15 billion share sale

Intel's $15 billion stock sale. Why shares fell despite AI boom 1/8 Intel announces $15 billion share sale Intel has launched a plan to raise $15 billion through a new common-stock offering as the chipmaker looks to strengthen its finances and fund its expansion in AI and semiconductor manufacturing. 2/8 Why did Intel fall? Intel shares fell after the company announced the offering, as investors worried about share dilution. Issuing new shares increases the total number of shares outstanding, potentially reducing existing shareholders' ownership stake and earnings per share. 3/8 Cashing in on a massive rally Intel is taking advantage of a powerful rally in its stock. Reuters reported that the company's shares had nearly tripled this year, giving Intel an opportunity to raise substantial capital at a much higher valuation than earlier in its turnaround. 4/8 Where will the money go? The funds will support Intel's efforts to expand its AI chip design and semiconductor manufacturing capabilities. The company is targeting opportunities in AI-related chips, custom silicon, advanced packaging and contract manufacturing as demand for AI infrastructure accelerates. 5/8 Intel's bigger foundry ambitions Intel is trying to turn its manufacturing operations into a major contract chipmaking business capable of competing with Taiwan Semiconductor Manufacturing Co. The company is investing heavily in advanced manufacturing technology and plans to use its upcoming 14A process for future production. 6/8 AI boom is driving the strategy The rapid growth of artificial intelligence is creating new opportunities for Intel beyond its traditional PC and data-centre processor businesses. The company is increasing investment in manufacturing and AI-related technologies as it seeks to benefit from rising demand for computing capacity. 7/8 The big investor dilemma For investors, Intel's share sale presents both a near-term concern and a long-term opportunity. The immediate impact is potential dilution, but the additional capital could help the company accelerate its turnaround, expand its foundry business and capture a larger share of the growing AI market. 8/8 What investors should watch Intel's ability to turn its huge investments into profitable growth will be crucial. Investors will closely track AI demand, manufacturing expansion, new foundry customers, progress on the 14A process and whether the company's turnaround ultimately translates into stronger earnings and cash flow.

Intel shares drop 5% after announcing $15 billion offering to support AI growth

Intel shares fell over 5% after the semiconductor giant announced a $15 billion common stock offering to fund capital needs and support AI-driven growth opportunities. The offering aims to strengthen its balance sheet while expanding capacity for rising AI compute demand. Shares of Intel Corporation fell 5.24% to $96.32 on the Nasdaq on Monday, August 10, after the semiconductor designer and manufacturer announced a $15 billion underwritten public offering of common stock. At the last check, the stock was trading 4.13% lower at $97.45. During Monday's session so far, Intel shares have moved in the range of $98.96 to $96.31, exchange data showed. US MarketsPowered By As on 10 Aug 2026, 07:52 PM IST S&P 500 Top Gainers Akamai Technologies118.95(7.60%) Datadog249.16(6.51%) Vertex Pharmaceuticals526.95(6.22%) Super Micro Computer32.95(5.83%) Gainers" S&P 500 Top Losers Coterra Energy32.56(-8.62%) Trade Desk12.99(-5.87%) First Solar235.82(-5.69%) eBay106.95(-4.50%) Losers" The decline in Intel's stock came after the company announced the $15 billion common stock offering to support what it described as strong customer demand for artificial intelligence compute. "Customers continue to signal a strong and sustainable demand environment, driven by unprecedented investment in AI compute. Progress in emerging areas including physical AI, purpose-built silicon, advanced packaging and external wafers represent significant growth opportunities for Intel," the company said in a release. Intel said it intends to use the net proceeds from the offering for general corporate purposes, which may include capital expenditures and working capital. ALSO READ: Dow Jones| Nasdaq | US Stock Market Today | Live: US stocks swing as traders monitor Hormuz developments The offering is intended to further enable Intel to pursue the growth opportunities ahead while maintaining a strong balance sheet and its commitment to an investment-grade rating, the company said. Intel also expects to grant the underwriters a 30-day option to purchase up to an aggregate of $2.25 billion of additional shares of common stock at the public offering price, less underwriting discounts. J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are acting as joint book-running managers for the proposed offering. Intel said it has filed a registration statement on Form S-3, including a preliminary prospectus, with the US Securities and Exchange Commission for the offering. Founded in July 1968 by Robert Noyce and Gordon Moore, Intel Corporation is an American technology company headquartered in Santa Clara, California. The company designs and manufactures central processing units (CPUs) and semiconductor chips and develops semiconductor technologies. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Intel stock offering raises $20B: What it means for investors

Intel Corp. (INTC) priced an upsized $20 billion stock offering at $95 a share on Tuesday, Aug. 11, raising $5 billion more than the $15 billion plan it announced just one trading day earlier. Wall Street treated this as breaking news. It wasn't. Intel's own finance chief told investors this could happen three weeks ago, and almost no one flagged it as a warning. On the company's July 23 earnings call, chief financial officer David Zinsner said Intel held roughly $40 billion in liquidity but that further success might require more. He put it plainly: Intel "may need to tap the capital markets to drive some more investment," according to a Benzinga report on the offering. Three weeks later, that's exactly what happened. The math behind the dilution Intel sold 210,526,315 new shares Tuesday, Aug. 11, according to a statement from the company. Against roughly 5.04 billion shares outstanding, that works out to about 4.2% dilution before underwriters exercise any option. Underwriters have a 30-day window to buy 31,578,947 more shares at the same price. If they take the full allotment, total dilution climbs toward 4.8%. Every existing shareholder now owns a slightly smaller slice of a company that just raised $19.7 billion in net proceeds. The stock priced at a discount, and it had already been falling Shares closed Monday, Aug. 10, at $97.52, down 4.06% on the day. The $95 offering price landed 2.6% below even that lower close, according to Reuters. Investors who bought Monday's dip still paid more than the company charged institutional buyers a day later. That gap matters more than it looks. It signals underwriters needed a real discount to move 210 million shares in a single session, even with Intel's stock still up sharply this year. As of Monday, Intel had nearly tripled year to date, outperforming AMD, Nvidia and the Philadelphia Semiconductor Index's nearly 75% gain, according to Reuters. CHENG YU-CHEN / Getty Images Immediate spending on AI infrastructure Intel's capital expenditures are projected to exceed $20 billion in 2026, driven by surging customer demand for AI computing power, according to a CNBC report. The stock sale essentially converts a paper rally into cash for the factories and packaging lines Intel needs to compete with TSMC. This isn't unique to Intel. Big tech capital spending on AI infrastructure is on pace to hit $765 billion this year and $1.2 trillion in 2027, according to Goldman Sachs estimates cited by CNBC. Companies with rising stock prices are increasingly using that currency to fund the buildout instead of taking on new debt. What this means for future AI funding What separates Intel's case is the paper trail. Zinsner told investors exactly what was coming, and the market still reacted like it was a surprise when the bill arrived. That gap between disclosure and reaction is worth watching at other AI-adjacent companies telegraphing similar plans on earnings calls. The next test comes when the 30-day underwriter option expires in September. If it's exercised in full, dilution edges closer to 5%, and investors will find out whether Intel's turnaround story is strong enough to absorb it. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc. This story was originally published August 11, 2026 at 2:03 PM.

Intel to Offer $15 Billion of Common Stock

Intel shares fell 4% in premarket trading Monday after the company announced it would offer $15 billion in common stock. The chip maker cited strong customer demand "driven by unprecedented investment in AI compute." Intel said it would use proceeds from the offering for general purposes, including capital expenditures and working capital. In its July earnings release, Intel raised its forecast for capital expenditures for this year to more than $20 billion, up from $18 billion previously. The company said next year's capex will be "significantly above" this year's level. Executives said the higher spending was a sign of their confidence in future sales. Intel reported sales of $16.1 billion in its most recent quarter, up 25% from the year-earlier period and beating analyst estimates by 11%. The artificial-intelligence revolution has begun to benefit Intel because the next wave to AI technology-AI agents completing tasks for users-relies on the central processing units, or CPUs, that are the company's specialty. Intel is one of the few American companies that operates chip-fabrication plants, a strategically important business that the Trump administration has sought to build up to reduce American dependence on Asian chip makers. The U.S. took a 10% stake in the company as part of the effort. As part of its stock offering, Intel expects to grant the underwriters a 30-day option to purchase up to $2.25 billion of additional shares.