Intel announced a $15 billion common stock offering on Monday to fund its response to surging AI chip demand, and shares fell 4% on the news. The chipmaker plans to direct the money toward capital expenditures and working capital as it expands physical AI, custom silicon and advanced packaging.
The chipmaker announced a $15 billion common stock offering on Monday to support skyrocketing customer demand for artificial intelligence computing power. Shares of Intel fell 4% on the news.
The chipmaker plans to use the funding for corporate needs, including capital expenditures and working capital, and named physical AI, purpose-built silicon and advanced packaging among its major growth opportunities. The offering also includes a 30-day option letting underwriters buy an additional $2.25 billion in common stock.
Chip giants keep raising AI spending
Intel's raise follows a broader surge in AI infrastructure spending across the technology sector. Several mega-cap companies boosted their capital expenditures this earnings season, with sector-wide spending on track to hit $765 billion this year and $1.2 trillion in 2027, according to estimates from Goldman Sachs. Amazon gave the highest guidance among the group this reporting period, citing the memory crunch.
Intel stock has already quintupled
Intel shares have surged 175% in 2026 and quintupled in value over the last year, lifted by the AI infrastructure build-out. The stock has also benefited from the U.S. government's 10% equity stake aimed at bolstering domestic chip manufacturing. Last month, Intel posted its fastest revenue growth in nearly 15 years and hiked its capital expenditures guidance to $20 billion, citing strong customer demand. Intel finance chief David Zinsner told CNBC the company is bracing for "a meaningful increase" in 2027.
Source: U.S. Securities and Exchange Commission
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