Intel plans $15 billion stock offering to fund AI capacity buildout

Intel plans a $15 billion common stock offering to fund capital spending as customer demand for AI computing power accelerates.

Finance chief David Zinsner said most of the spending would support factory tooling, with the company bracing for a "meaningful increase" in 2027.

Shares fell 4.1 percent Monday. The offering includes a 30-day option allowing underwriters to buy an additional $2.25 billion in common stock. Intel highlighted physical AI, purpose-built silicon and advanced packaging as major growth opportunities.

The raise comes as technology giants pour trillions into AI infrastructure, with mega-cap capital expenditures on track to hit $765 billion this year and $1.2 trillion in 2027, according to Goldman Sachs estimates. Amazon gave the highest guidance among the group this reporting period, citing the memory crunch.

Intel is weighing expanding the offering to about $20 billion, up roughly a third from the initial target, Bloomberg reported Tuesday. Pricing could come at $95 a share or higher, a discount of about 6.5 percent to last Friday's close, with subscriptions already exceeding $100 billion. JPMorgan, Goldman Sachs, Morgan Stanley and Citigroup are underwriting the sale.

The stock offering follows Intel's fastest revenue growth in nearly 15 years, reported last month, when the chipmaker raised its capital expenditure guidance to $20 billion. The company has been working to strengthen its balance sheet under Chief Executive Lip-Bu Tan, who has sought participation from the U.S. government and outside investors including Nvidia. Washington holds a 10 percent equity stake aimed at bolstering domestic chip manufacturing.

Intel shares have surged 175 percent in 2026 and quintupled over the past year, giving the company a favorable financing window. The stock's run mirrors a broader rotation of capital into AI equities; Nvidia dropped 2.9 percent Monday after reaching a deal with Wall Street firms to help raise $500 billion for the AI infrastructure build-out.

The equity raise, rather than further debt, reflects Intel's limited balance-sheet capacity after years of monetizing assets. Large-scale stock financing has concentrated in AI-related companies this year, with Alphabet announcing a plan of up to $85 billion and Oracle about $20 billion.

The offering dilutes existing holders but funds the factory tooling needed to meet AI demand. Investors will watch the final pricing and size of the sale, expected to be set in coming days.

This article is for informational purposes only and does not constitute investment advice.