Intel Corp. (NASDAQ:INTC) said Monday it plans to raise $15 billion through an underwritten public offering of common stock as the chipmaker looks to fund investments tied to growing artificial intelligence demand.
Intel shares were trading more than 4% lower following the announcement.
The company plans to use the net proceeds for general corporate purposes, including capital expenditures and working capital.
Intel Targets AI Growth Opportunities
Intel said customers continue to signal strong and sustainable demand, fueled by unprecedented investment in AI computing infrastructure.
The chipmaker also sees growth opportunities in physical AI, purpose-built silicon, advanced packaging and external wafer manufacturing.
The offering is designed to give the company additional financial flexibility to pursue those opportunities while maintaining a strong balance sheet and its commitment to an investment-grade credit rating.
The chipmaker said it remains disciplined in deploying capital. The company plans to align investments with customer demand and projects that offer clear returns.
Offering Could Grow By $2.25 Billion
Intel expects to give the underwriters a 30-day option to purchase up to an additional $2.25 billion of common stock at the public offering price, less underwriting discounts.
If the underwriters exercise the option in full, the offering could raise as much as $17.25 billion before underwriting discounts and other expenses.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are serving as joint book-running managers for the proposed offering.
Intel Price Action
INTC Stock Price Activity: Intel shares were down 3.06% at $98.54 during premarket trading on Monday, according to Benzinga Pro data.
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