Intel raises 15 billion dollars in first public stock offering since 1971 listing to fund AI expansion capital spending
Intel $INTC is selling $15 billion in common stock, its first public share sale since listing in 1971, to fund AI-driven expansion. The offer equals about 75% of Intel's projected 2026 capex. Shares fell 4% Monday after Intel stock had already risen 175% over the past year.
Intel $INTC announced Monday it is raising $15 billion through an underwritten public offering of common stock, the chipmaker's first public share sale since it listed in 1971, according to Intel's own statement and Bloomberg reporting. Intel said it will use the proceeds for capital expenditures and working capital while pursuing growth in areas including physical AI, purpose-built silicon and advanced chip packaging, and while aiming to preserve an investment-grade credit rating. The base offering represents about 75% of Intel's projected $20 billion capital spending for 2026, with underwriters holding a 30-day option to buy an additional $2.25 billion in stock, a structure that would add roughly 3% to Intel's shares outstanding. Intel shares fell 4% Monday on the dilution news, even though the stock has risen 175% over the past 12 months. The company reported a 25% jump in second-quarter revenue last month, its strongest growth in 15 years, driven by 59% growth in its Data Center and AI group, and is benefiting from a broader shortage of CPUs as data centers pair them with specialized AI chips. New CEO Lip-Bu Tan is overseeing what the company has described as an early-stage turnaround after Intel lost ground to rivals TSMC and Nvidia $NVDA in recent years.