Intel announced on Tuesday that it raised $20 billion in an upsized share sale, about one-third more than it initially planned. The chipmaker said on Monday it aimed to raise $15 billion through the share sale.
The chipmaker priced the offering at $95 per share, a 6.5% discount to Friday’s closing price, according to Bloomberg calculations. Sources close to the development also told Bloomberg that the share sale drew more than $100 billion in demand.
Once a dominant force in the global chip industry, Intel is investing heavily in new facilities and advanced packaging capabilities as it seeks to challenge industry leaders such as TSMC in contract chip manufacturing.
It is no secret that Intel needs the money because it is spending heavily to expand its chip production.
“Customers continue to signal a strong and sustainable demand environment, driven by unprecedented investment in AI compute. Progress in emerging areas, including physical AI, purpose-built silicon, advanced packaging and external wafers, represents significant growth opportunities for Intel.”
Last month, Intel posted its fastest revenue growth in nearly 15 years and raised its capital expenditure guidance to $20 billion, citing strong customer demand.
Shares were up 0.5% at $97.99 in premarket trading on Tuesday. The stock fell 4.1% to close at $97.52 on Monday when Intel originally disclosed the fundraising plan
Several analysts have said Intel's surging share price has increased the chances of an equity raise to help fund its expansion plans.
"As a capital-intensive business that went a long way to wrecking its own balance sheet and prospects by focusing on financial engineering rather than physical engineering, courtesy of $82 billion of share buybacks in the 2010s, it makes perfect sense for Intel to raise money, especially after a five-fold increase in the stock price since last August," Russ Mould, investment director at AJ Bell told Reuters.
The deal shows that investors are still willing to invest in AI-related companies.
Alphabet Inc. is in the process of raising up to $85 billion through equity offerings, including at-the-market sales and equity-linked deals. And Oracle Corp.’s fundraising plans include a $20 billion at-the-market sale.
South Korean memory chipmaker SK Hynix Inc. raised $26.5 billion in its debut offering of American depositary receipts, the largest-ever listing by a foreign company on a US exchange.
Its rival, CXMT Corp., raised about $9.9 billion last month in a near-Chinese record initial public offering and subsequently became the largest mainland-listed company.
Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br>
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As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br>
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She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness. <br>
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