Intel has announced a proposed $15 billion underwritten public offering of its common stock as the semiconductor company looks to strengthen its balance sheet and fund investments tied to growing demand for AI computing.
Intel intends to use the net proceeds for general corporate purposes, which could include capital expenditures and working capital.
The company said customers continue to signal strong and sustainable demand driven by unprecedented investment in AI compute.
Intel also sees emerging growth opportunities across physical AI, purpose-built silicon, advanced packaging and external wafer manufacturing.
The offering is intended to give Intel additional financial capacity to pursue these opportunities while maintaining what the company described as a strong balance sheet and its commitment to an investment-grade credit rating.
Intel said it will continue applying discipline to capital deployment, aligning investments with customer demand and clear expectations for returns.
As part of the proposed transaction, 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 option were exercised in full, the offering could increase to as much as $17.25 billion.
J.P. Morgan Securities, Goldman Sachs, Morgan Stanley and Citigroup Global Markets are serving as joint book-running managers for the proposed offering.
The capital raise comes as Intel continues investing heavily in advanced semiconductor manufacturing and next-generation process technologies, including Intel 14A, while pursuing additional external foundry customers.
Intel is also expanding its capabilities in advanced packaging and specialized silicon as AI workloads increase demand for new computing architectures and manufacturing capacity.
The company said the proposed equity offering would provide additional resources to pursue these growth areas while supporting working capital and capital expenditures associated with its broader strategy.
KEY QUOTE:
“Customers continue to signal a strong and sustainable demand environment, driven by unprecedented investment in AI compute. Progress in emerging areas including physical AI, purpose-built silicon, advanced packaging and external wafers represent significant growth opportunities for Intel.”
Intel statement
