Intel plans to sell $15 billion worth of stock after it has risen 400% in a year
By Britney Nguyen
The company said it sees growth opportunities in physical AI, custom chips and advanced packaging
Intel announced a $15 billion common stock offering on Monday.
Intel plans to take advantage of its soaring share price as it intends to offer $15 billion worth of stock.
The company said in a release that customer demand looks "strong and sustainable" in the artificial-intelligence era. Intel (INTC) is seeking to raise the money to capitalize on this trend.
Intel sees "significant growth opportunities" from its advancements in areas such as physical AI, custom silicon, advanced chip packaging and external wafers, the company added. The offering is meant to support growth while preserving the company's investment-grade rating.
The company plans to put net proceeds from the proposed offering toward "general corporate purposes," including capital spending.
Intel's stock fell 4% on Monday. Shares have surged more than 400% over the past 12 months.
Underwriters of the deal are expected to have a 30-day option to buy up to $2.25 billion of additional common stock at the price at public offering, Intel said. J.P. Morgan(JPM), Goldman Sachs (GS), Morgan Stanley (MS) and Citigroup (C) are listed as joint book-runners.
Intel reported its strongest revenue growth in 15 years during its June-quarter earnings report late last month, reflecting surging demand for its data-center central processing units. The rise of agentic AI applications has put Intel's CPUs front and center within the AI race. The company has also been able to raise prices as demand for these chips outstrips supply.
The company raised its 2026 spending guidance to more than $20 billion on the latest earnings call, and management said that number should be much higher in 2027.
-Britney Nguyen
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08-10-26 1847ET
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