NEW YORK — Intel announced Tuesday it upsized its common stock offering to $20 billion, pricing shares at $95 each. The company had declared an initial $15 billion offering Monday to support demand for AI computing.
Shares fell 4 percent Monday after the initial announcement. Intel expects net proceeds of $19.7 billion after underwriting discounts, commissions and estimated expenses.
The company plans to use proceeds for capital expenditures and working capital, with a focus on physical AI, purpose-built silicon and advanced packaging.
Technology giants have committed trillions in recent years to meet AI demand and the associated infrastructure build-out. Goldman Sachs estimates total spending on AI infrastructure will reach $765 billion this year and $1.2 trillion in 2027.
Amazon reported the highest capital expenditure guidance among its peers this earnings season, citing a memory crunch.
Last month, Intel reported its fastest revenue growth in nearly 15 years and raised its capital expenditures guidance to $20 billion, citing strong customer demand.
Chief Financial Officer David Zinsner said most of that spending would support factory tooling and that the company anticipates a meaningful increase in capital expenditures in 2027.
The U.S. government holds a 10 percent equity stake in Intel, aimed at supporting domestic chip manufacturing. The stock surged 175 percent in 2026 and quintupled over the past year.
The offering is set to close Aug. 12. Underwriters have a 30-day option to purchase up to an additional $2.25 billion in common stock, totaling 31,578,947 shares.
