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Intelannounced a $15 billion underwritten public offeringof common stock on Monday, seeking to capitalize on a surge in its share price driven by demand for AI computing hardware.
The company said proceeds will be used for general corporate purposes, which may include capital expenditures and working capital.
"Progress in emerging areas including physical AI, purpose-built silicon, advanced packaging and external wafers represent significant growth opportunities for Intel," the company said in a statement.
Intel stock has nearly tripled this year, reaching $101.65, according toBloomberg.
Intel stock fell more than 3% in premarket trading on Monday, according toReuters, likely reflecting investor concern about dilution from the new offering.
Growing adoption of AI agents has strained Intel's ability to keep up with orders for central processing units, with company executives acknowledging that customer demand has exceeded available manufacturing capacity, according to Reuters.
Intel's data center unit posted 59% revenue growth in the most recent quarter, a rate that outpaced the company's total revenue expansion by more than twofold, according to Bloomberg.
As part of the deal, underwriters have been granted an option, exercisable within 30 days, to acquire as much as $2.25 billion in additional shares at the offering price after subtracting applicable discounts, the company said.
JPMorgan Securities, Goldman Sachs, Morgan Stanley and Citigroup Global Markets are acting as joint book-running managers.
The offering is part of a broader push by Intel to rebuild its manufacturing standing and compete in contract chip production.
In July, Intel lifted its capital spending target for the year to $20 billion from $18 billion, and the company has pledged to bring its 14A manufacturing process to high-volume output by 2028.
Tesla has signed on as a customer for Intel's 14A process through its foundry division.
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