Intel upsized its stock offering to $20 billion to fund its AI chip manufacturing push

Intel Corp. has successfully raised $20 billion through a larger-than-anticipated share sale, exceeding its initial target by a third. The company priced the offering at $95 per share, marking a 6.5% discount to Friday's closing price. The deal attracted over $100 billion in demand, underscoring the resilience of investor interest in AI-related stocks.

This marks one of the largest US equity offerings of the year, with Alphabet Inc. also aiming to raise up to $85 billion and Oracle Corp. planning a $20 billion at-the-market sale. South Korean chipmaker SK Hynix Inc. made history with a $26.5 billion debut offering, while CXMT Corp. raised about $9.9 billion in a near-record initial public offering.

Intel's shares dipped slightly in after-hours trading following a 4.1% decline during regular market hours, yet they have still surged by roughly 164% this year. CEO Lip-Bu Tan has been focused on streamlining Intel's finances, which includes securing investments from the US government and chip rivals like Nvidia Corp. To solidify its position in the AI boom, Intel is amassing cash reserves with the aim of assuming a more prominent role.

The surge in data center construction has already fueled demand for its general processors, but Intel faces stiff competition from Nvidia and Advanced Micro Devices in the AI processor market. Intel requires funds to establish a network of factories to fulfill its objective of becoming an outsourced manufacturing partner for the tech industry.

Key banks involved in the offering include JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley, and Citigroup Inc.