Intel Raises Stock Offering to $20 Billion as AI Financing Demand Remains Strong
Intel has increased the total size of its stock offering to $20 billion, one-third above the target disclosed when the company announced the plan on Monday. Intel said Tuesday that the shares were priced at $95 each, with subscription and settlement expected to be completed Wednesday. The price represents a 6.5% discount to last Friday’s closing price. Reports had previously indicated that Intel planned to increase the initial fundraising target. The transaction reflects continued investor appetite for equity offerings from companies tied to the artificial intelligence industry. Several of the largest U.S. equity financings this year have involved companies benefiting from the AI investment boom. Alphabet is seeking to raise as much as $85 billion through various equity-financing methods, including at-the-market offerings and equity-linked products. The source also says that an unidentified financing plan includes a $20 billion at-the-market offering. South Korean memory-chip maker SK Hynix raised $26.5 billion through an initial offering of American depositary receipts, setting a record for the largest amount raised by a foreign company listing on a U.S. exchange. Intel shares fell 4.1% during Monday’s regular session and were little changed in after-hours trading after the news was announced. The stock is up about 164% this year. Since Chief Executive Officer Lip-Bu Tan took office, improving Intel’s financial condition has been a core priority. The company has brought in U.S. government funding and secured external investment from chip-industry peers, including Nvidia. Intel continues to build its cash reserves and aims to play a more important role in the AI boom. Global data-center expansion has increased demand for its general-purpose processors, but Intel has struggled to compete directly with Nvidia and AMD in AI chips. The company also needs funding to expand its wafer-fabrication network and deliver on its strategy of becoming an outsourced manufacturing hub for the technology industry. Citigroup served as an underwriter for the stock offering.
Intel said Tuesday that the shares were priced at $95 each, with subscription and settlement expected to be completed Wednesday. The price represents a 6.5% discount to last Friday’s closing price.
Reports had previously indicated that Intel planned to increase the initial fundraising target.
The transaction reflects continued investor appetite for equity offerings from companies tied to the artificial intelligence industry. Several of the largest U.S. equity financings this year have involved companies benefiting from the AI investment boom. Alphabet is seeking to raise as much as $85 billion through various equity-financing methods, including at-the-market offerings and equity-linked products. The source also says that an unidentified financing plan includes a $20 billion at-the-market offering.
South Korean memory-chip maker SK Hynix raised $26.5 billion through an initial offering of American depositary receipts, setting a record for the largest amount raised by a foreign company listing on a U.S. exchange.
Intel shares fell 4.1% during Monday’s regular session and were little changed in after-hours trading after the news was announced. The stock is up about 164% this year. Since Chief Executive Officer Lip-Bu Tan took office, improving Intel’s financial condition has been a core priority. The company has brought in U.S. government funding and secured external investment from chip-industry peers, including Nvidia.
Intel continues to build its cash reserves and aims to play a more important role in the AI boom. Global data-center expansion has increased demand for its general-purpose processors, but Intel has struggled to compete directly with Nvidia and AMD in AI chips. The company also needs funding to expand its wafer-fabrication network and deliver on its strategy of becoming an outsourced manufacturing hub for the technology industry.
Citigroup served as an underwriter for the stock offering.