Prime Highlights
- Intel plans to raise $15 billion through a new share sale.
- The funds will support Intel’s chip manufacturing and foundry expansion.
Key Facts
- Intel shares have nearly tripled this year, outperforming major chip rivals.
- Intel has raised its 2026 capital expenditure forecast to $20 billion.
Background
Intel intends to make a share offering that will generate revenue of up to $15 billion, as it tries to capitalize on the high value of its stock and invest in the growth of its semiconductor manufacturing business.
The firm is making huge investments in the establishment of new manufacturing plants and chip packaging technology to enable it to compete favorably with Taiwan Semiconductor Manufacturing Co. (TSMC). Intel has also increased its capital spending plans as demand for processors grows with the wider use of artificial intelligence.
Reports indicate that Intel could increase the share sale to around $20 billion. The offering could be priced at $95 a share or higher, while strong investor demand has reportedly crossed $100 billion. The company has not confirmed these details.
Intel shares fell more than 4% on Monday after news of the planned offering. However, the stock has nearly tripled this year, significantly outperforming AMD, Nvidia and the broader Philadelphia Semiconductor Index.
Intel expects to spend about $20 billion on capital expenditure this year, up from its earlier forecast of $18 billion. It also plans to begin high-volume production using its 14A manufacturing process in 2028.
The company has secured Tesla as a customer for its 14A technology. Intel is also expanding its manufacturing network, including a €5 billion investment in Ireland to upgrade and expand production facilities.
Underwriters will receive an option to buy up to an additional $2.25 billion worth of Intel shares. JPMorgan Securities, Goldman Sachs, Morgan Stanley and Citigroup Global Markets will manage the offering.