Intel has increased the size of its common stock offering from $15 billion to $20 billion, pricing approximately 210.53 million new shares at $95 each. The US chipmaker expects net proceeds of about $19.7 billion after underwriting discounts and expenses. Sources differ on the timing: one report says the increase was announced on Monday, while two others indicate it occurred on Tuesday.
Underwriters have been granted a 30-day option to purchase up to an additional 31.58 million Intel shares at the same $95 offering price. If exercised in full, Intel could sell roughly 242.1 million shares, with gross proceeds potentially rising to about $23 billion. One source said up to $3 billion more could follow, without specifying the total gross figure.
Bloomberg reported that Intel's share sale attracted $100 billion in demand.
Intel said the offering is expected to close on Wednesday, though one source specified a close date of August 12, 2026. The company plans to use the proceeds for general corporate purposes, potentially including capital expenditures and working capital. Intel has identified AI computing, purpose-built chips, advanced packaging, and semiconductor manufacturing capacity as key investment areas, and the fresh capital is intended to expand its chip contract manufacturing (foundry) business.
The share offering was upsized due to high demand, and the new shares were priced at a 6.5% discount to Intel's closing price last Friday. Stephan Kemper, chief investment officer at BNP Paribas wealth management, said of the capital increase: "bleibt das Vertrauen des Kapitalmarktes in den KI-Ausbau ungebrochen" (the capital market's confidence in the AI expansion remains unbroken).
CEO Lip-Bu Tan's restructuring has helped Intel's share price more than quintuple over the past twelve months. The company's market capitalization rose from roughly $90 billion last August to around $491 billion at press time, having reached an all-time high of $673 billion on June 20, 2026. The new share issue dilutes existing shareholders' stakes by about 4.2%, or 4.8% if the underwriters' option is exercised in full.
Intel says its foundry business, which accumulated billions in losses in recent years, can no longer meet demand. The company missed the trend toward high-performance AI chips, but data centers also use traditional CPUs, which are needed for running trained AI models and AI agents. Intel recently won Google and SpaceX as customers, and Nvidia, a major Intel shareholder, is considering commissioning Intel to produce a new processor. Intel is also in negotiations with Apple.
To support its foundry ambitions, Intel is ramping up its Fab 52 in Arizona and is on track to use the adjacent Fab 62 when needed. Its planned fab complex in Ohio is expected to cost over $100 billion when fully built, and Intel 14A is due to enter mass production in 2028. In risk disclosures, Intel cited Intel 14A, other advanced process technologies, manufacturing expansion, and the need to secure design wins and volume commitments from major external foundry customers. The company also listed alternative financing arrangements, government grants, and the US government's significant equity position as risk factors.
The offering is expected to dilute existing shareholders by about 4.2% (4.8% if the underwriters' option is exercised). Approximately $300 million of the proceeds will go to participating banks and managers, including J.P. Morgan, Goldman Sachs, Morgan Stanley and Citigroup. Intel's stock fell about 4% after the announcement, trading at about $97, above the $95 offer price. The company has budgeted just over $20 billion in total capital investments for 2026, with CFO David Zinsner saying most of the spending will go to its fab facilities. Intel announced an investment of €5 billion for its Irish semiconductor plant, though this has not been independently verified.
Intel has not assigned the offering proceeds to specific projects and says the capital can be used across the business. The company needs to build production capacity to secure orders from large external foundry clients. Retail investors do not get the opportunity to buy the slightly discounted shares in the offering; all newly issued shares are common shares with voting rights.
