Intel CEO Lip-Bu Tan. Intel announced Monday that it would conduct its first share offering since its listing to fund AI investment. [Reuters]
Intel CEO Lip-Bu Tan. Intel announced Monday that it would conduct its first share offering since its listing to fund AI investment. [Reuters]

US chipmaker Intel said it would conduct its first share offering since going public, raising funds to invest in AI semiconductors. The announcement sent Intel's share price down 4 percent.

Intel disclosed Monday that it would raise $15 billion through a public offering of additional common shares — the company's first large-scale equity offering since its 1971 listing.

Intel cited surging customer demand as the rationale for the move. "Customers are making unprecedented investments in AI computing, sustaining a durable demand environment," the company said, adding that advances in physical AI, custom chips, advanced packaging and external wafers "present significant growth opportunities for Intel."

Intel said it would use the proceeds for capital expenditures, including AI infrastructure investment, as well as working capital.

The company had already raised its annual capital expenditure forecast to $20 billion when it reported second-quarter earnings last month, saying at the time it planned to increase spending on equipment, clean rooms and substrates to support product and foundry growth through next year.

Intel also said the offering would help it maintain a solid financial structure and an investment-grade credit rating as it pursues future growth opportunities.

The move is part of CEO Lip-Bu Tan's top priority since taking office: strengthening Intel's balance sheet. It also lays the groundwork to secure favorable interest rates on any future corporate bond issuances.

However, news of the large-scale offering triggered a sell-off on dilution concerns, with Intel's share price falling 4.06 percent on Monday.


kate01@heraldcorp.com