Intel plans $15 billion share sale as turnaround rally lifts stock
Intel said on Monday it was planning to raise $15 billion through a share sale, as it looks to fund the costly build-out of its chip contract manufacturing business by cashing in on a stock surge fueled by its turnaround efforts.
Intel announced plans on Monday to raise $15 billion through a share sale, seeking to fund its costly expansion in chip contract manufacturing. The company, once a dominant player in the global chip industry, is investing in new facilities and advanced packaging capabilities to challenge industry leaders like TSMC in contract chip production.
Bloomberg News reported that Intel intends to expand the size of its share sale to around $20 billion, with a potential pricing at $95 a share, a 2.6% discount from Monday's closing price of $97.52. Investor demand for the shares has exceeded $100 billion, and the deal could exceed $20 billion if the over-allotment option is exercised.
Reuters could not independently confirm the report, and Intel declined to comment outside regular business hours. Intel's shares declined more than 4% on Monday, having nearly tripled so far this year, outperforming competitors AMD and Nvidia, and the Philadelphia Semiconductor Index's 75% rise. Analysts attribute the surge to Intel's turnaround efforts and surging share price, which could make an equity raise more likely to fund its expansion plans.
Intel's capital expenditures for this year have been increased from $18 billion to $20 billion due to the growing demand for AI agents, exceeding the company's manufacturing capacity. The chipmaker committed to producing high-volume chips using its 14A manufacturing process in 2028, after initially considering shelving the technology without a major external customer.
Intel's foundry unit secured Tesla as a customer for its 14A chips, and optimism for another major client increased after U.S. President Donald Trump mentioned Apple's potential shift to Intel processors, though neither company confirmed the deal. Intel recently announced a €5 billion investment to upgrade and expand chip manufacturing in Ireland, representing over 25% of its planned 2026 capital spending.
Underwriters have a 30-day option to purchase up to $2.25 billion worth of additional shares at the offer price, minus discounts, with JPMorgan Securities, Goldman Sachs, Morgan Stanley, and Citigroup Global Markets serving as joint book-running managers.
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