Intel plans to raise $15 billion in new funding by offering new stock for sale to the public.
Once hobbled by competition with Nvidia and AMD, Intel is now benefiting from the AI tide that is lifting all boats. In the past year, Intel’s stock has risen around 400%.
Asking itself why it’s doing this now, Intel said, “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 intends to use the net proceeds from the offering for general corporate purposes, which may include, but are not limited to, capital expenditures and working capital.
The offering is intended to further enable Intel to pursue the growth opportunities ahead while maintaining a strong balance sheet and its commitment to an investment-grade rating.
Investment discipline
Intel said it remains disciplined in capital deployment, aligning investments with customer demand and clear return expectations.
Intel expects to grant to the underwriters of the offering a 30-day option to purchase up to an aggregate total of $2.25 billion of additional shares of common stock at the public offering price, less underwriting discounts.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Citigroup Global Markets Inc., are acting as joint book-running managers for the proposed offering.