Intel completed a $20 billion equity offering on Tuesday, exceeding its initial target of $15 billion, according to filings and reports. The company priced shares at $95 per share, representing a 2.6% discount from the previous close. The capital raise comes as Intel seeks to fund its costly expansion into chip contract manufacturing, an area where it aims to compete with established leaders like TSMC.
The chipmaker’s shares experienced significant volatility during the offering process, declining more than 4% on Monday before the pricing was announced. However, Intel’s stock has performed substantially over a longer timeframe, nearly tripling so far this year and outperforming semiconductor sector peers AMD and Nvidia as well as the broader Philadelphia Semiconductor Index, which rose nearly 75%. This strong performance created what analysts described as favorable conditions for an equity raise.
Intel’s capital expenditure needs have grown as demand for processors surges, driven by the shift toward AI applications. In July, the company raised its capital spending forecast for the year from $18 billion to $20 billion. The company also committed to high-volume production using its 14A manufacturing process beginning in 2028, after previously indicating the technology could be discontinued without significant external customer commitments. Tesla has signed on as a 14A customer, and reports suggested potential interest from additional major clients including Apple, though neither company confirmed such arrangements.
Intel’s expansion plans include a significant manufacturing investment beyond its U.S. operations. Last month, the company announced a €5 billion ($5.77 billion) investment to upgrade and expand manufacturing capacity in Ireland, representing more than 25% of its planned capital spending for the year. JPMorgan Securities, Goldman Sachs, Morgan Stanley, and Citigroup Global Markets served as joint book-running managers for the offering.
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