Intel CEO Lip-Bu Tan. Intel announced Monday that it would conduct its first share offering since its 1971 IPO to fund AI investment. [Reuters]
Intel CEO Lip-Bu Tan. Intel announced Monday that it would conduct its first share offering since its 1971 IPO to fund AI investment. [Reuters]

Intel is launching its first large-scale share offering since going public, as the US chipmaker moves to strengthen its position in the AI semiconductor market. The company aims to expand investment in AI infrastructure and advanced manufacturing facilities while improving its financial footing.

Intel announced Monday a $15 billion share offering — its first major public stock sale since its 1971 IPO.

The company said it plans to use the proceeds for capital expenditures related to AI infrastructure investment as well as working capital.

"As customers continue to make unprecedented investments in AI computing, a sustainable demand environment is taking shape," Intel said in its filing. "Physical AI, custom chips, advanced packaging and external wafer production expansion represent significant growth opportunities for Intel."

Intel had already raised its capital expenditure outlook for this year to $20 billion when it reported second-quarter earnings, up from its previous forecast. The company has said it plans to expand investment in manufacturing facilities — including equipment, clean rooms and substrates — through next year to support growth in its product and foundry businesses.

The offering is also a central element of CEO Lip-Bu Tan's strategy to strengthen Intel's balance sheet. Through the share sale, Intel plans to maintain its investment-grade credit rating and lower future corporate bond issuance costs, creating additional capacity for investment.

Investor appetite proved stronger than expected.

Bloomberg, citing multiple sources, reported that the offering attracted more than $100 billion in demand and that Intel is considering expanding the offering to around $20 billion. Including the overallotment option, the final amount raised could exceed that figure, sources said.

The offering price is expected to be set at around $95 per share. JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup are jointly managing the deal.

Since Tan took the helm, Intel has attracted outside investment from the US government and Nvidia, among others, as part of its ongoing effort to shore up its finances. The moves reflect a strategy of pursuing aggressive investment in the AI chip market while securing financial stability.

Concerns over dilution of existing shareholders' stakes weighed on the stock, with Intel closing down 4.1% at $97.52 on the New York Stock Exchange on Monday. Despite the decline, the stock has still gained 164% this year, buoyed by optimism over Intel's AI business.


sjy@heraldcorp.com