Intel is said to seek US$20 billion in upsized share sale
The chipmaker is poised to price the offering at around US$95 per share or above
Intel has successfully completed an upsized share sale, raising a substantial US$20 billion on Tuesday (August 11). The company priced the offering at US$95 per share, which represented a 2.6% discount from its previous close. Intel's stock has surged nearly threefold so far this year, outperforming rivals AMD and Nvidia, as well as the Philadelphia Semiconductor Index's 75% rise.
Analysts believe the company's surging share price has increased the likelihood of this equity raise, which will help fund its expansion plans. Intel's turnaround efforts have involved significant investment in new facilities and advanced packaging capabilities to compete with industry leaders like TSMC in contract chip manufacturing.
The company has committed to high-volume production of chips using its 14A manufacturing process by 2028, after initially considering shelving the technology. Intel has also secured several high-profile clients, including Tesla, and expressed optimism for another major customer after former President Donald Trump mentioned Apple's potential collaboration with Intel.
In July, the company revised its capital expenditure forecast upward from US$18 billion to US$20 billion to accommodate its expansion plans. Intel announced a €5 billion (US$5.77 billion) investment to upgrade and expand chip manufacturing in Ireland, which accounts for over 25% of its planned 2026 capital spending.
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