Intel announced a $15 billion common stock offering on Monday to support rising AI demand. The chipmaker highlighted physical AI, purpose-built silicon and advance packaging among major growth opportunities and said it will use the funding to support corporate needs, including capital expenditures and working capital.
Intel is also reportedly investing heavily in new facilities and advanced packaging capabilities as it seeks to challenge industry leaders such as TSMC in contract chip manufacturing.
Intel’s shares fell more than 4% in early trading. As of the last close, the stock has nearly tripled this year. It outperformed the stocks of rivals like Nvidia, and AMD.
READ: Intel plans new job cuts after laying off 40,000 in the last two years (July 21, 2026)
Several analysts have said Intel’s surging share price has increased the chances of an equity raise to help fund its expansion plans.
“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.
According to Reuters, the shift toward AI agents has powered demand for central processing units beyond Intel’s manufacturing capacity. This prompted the company to raise its capital expenditure forecast for this year from $18 billion to $20 billion in July.
Last month, Intel revealed it has increased its spending plans for the next two years as the AI data center boom drives demand for its central processing units (CPUs), according to media reports discussing the company’s quarterly forecast. Intel also projected profits above analysts’ estimates on July 23.
READ: Intel to retain networking and communications unit in ongoing restructuring (December 4, 2025)
Intel expects third-quarter revenue of between $15.8 billion and $16.8 billion, compared with analysts’ average estimate of $15.10 billion, according to data compiled by LSEG. Adjusted profit is expected to be 38 U.S. cents a share, compared with analysts’ estimates of 27 U.S. cents a share. This comes as the chipmaker is benefiting from a boom in agentic AI in which autonomous agents carry out tasks such as computer coding on behalf of human users.
Finance chief David Zinsner said most of the spending would support factory tooling. He told CNBC that the company is bracing for a “meaningful increase” in 2027.
The Intel announcement includes a 30-day option that would allow underwriters to buy an additional $2.25 billion in common stock.