Intel Raises $20B in Stock Offering Amid Surging AI Demand

INTC priced an upsized common stock offering of $20 billion, selling 210,526,315 shares at $95 apiece. The deal was originally marketed at $15 billion and grew on demand: the institutional order book reached roughly $100 billion, about five times the size of the offering. Net proceeds are expected near $19.7 billion after underwriting discounts and expenses, with closing scheduled for August 12.

Intel has designated the proceeds for general corporate purposes, which it says may include capital expenditures and working capital. The raise follows a quarter in which the company posted its fastest revenue growth in nearly 15 years and lifted capital spending guidance to $20 billion, citing customer demand. In effect the equity raise pre-funds a capex program that has roughly doubled in ambition, at a share price that makes issuing equity far less punitive than it was through the 2024 to 2025 trough.

The tradeoff is dilution against optionality. Issuing more than 210 million new shares dilutes existing holders immediately, while the foundry and AI accelerator programs the money supports will not produce revenue for several quarters. A book covered five times over at $95 says the market is willing to fund that gap; whether it was worth funding depends on foundry customer commitments and the capex-to-revenue conversion investors will score in the next two earnings reports. Equipment suppliers levered to Intel's spending, ASML among them, are the second-order read on the same capex.

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