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

On Tuesday, Intel successfully raised $20 billion from an enlarged share offering to fund its chip contract manufacturing business, as its stock price surged due to the company's turnaround efforts. Intel priced the shares at $95 each, a 2.6% discount from the previous close, and aimed to raise $15 billion through the sale. The chipmaker had initially sought $20 billion but then revised the amount downward.

Shares had previously plummeted more than 4% on Monday, but as of Monday, the stock had nearly tripled so far in the year, outperforming rivals AMD and Nvidia and the Philadelphia Semiconductor Index's nearly 75% rise. Analysts have noted that Intel's surging share price has increased the likelihood of this equity raise to support its expansion plans.

Intel's turnaround includes a five-fold increase in the stock price since August last year, and the company has committed significant capital expenditure, increasing its forecast from $18 billion to $20 billion for this year. Additionally, Intel has secured new customers for its high-volume production of 14A manufacturing process chips, such as Tesla, and remains optimistic about potential marquee clients like Apple.

Intel also announced a €5 billion investment to upgrade and expand chip manufacturing in Ireland, representing over 25% of its planned 2026 capital spending.