Intel plans $15 billion share sale as turnaround rally lifts stock

On August 11, Intel raised $20 billion from an expanded share offering in a bid to fund its chip contract manufacturing business and capitalize on a stock surge driven by turnaround efforts. Once a leading player in the global chip industry, Intel is investing in new facilities and advanced packaging capabilities to compete with rivals like TSMC in contract chip manufacturing.

The company priced the offering at $95 per share, a 2.6 percent discount from the previous close, and stated its goal of raising $15 billion through the sale. Intel's shares had dropped over 4 percent on Monday, but have nearly tripled so far in 2023, outpacing rivals AMD and Nvidia, as well as the Philadelphia Semiconductor Index's 75 percent rise.

Analysts have noted that the surging share price has bolstered the prospects of an equity raise to support Intel's expansion plans.