U.S. chipmaker Intel said Monday it was planning to raise $15 billion through a common stock offering as – amid turnaround efforts – it seeks to meet accelerating demand for artificial intelligence computing.
Intel said the proceeds would be used for general corporate purposes, including capital expenditures and working capital.
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.
The company identified physical AI, purpose-built silicon and advanced packaging as key growth opportunities as technology firms expand the infrastructure needed to support AI services.
The offering includes a 30-day option allowing underwriters to purchase up to an additional $2.25 billion in Intel shares, potentially increasing the total proceeds to $17.25 billion.
Major technology companies have sharply increased AI-related investment amid rising demand for computing power, data centers and memory chips.
"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," said Russ Mould, investment director at AJ Bell.
Still, its shares fell about 4.8% in premarket trading following the announcement.
