Intel Is Increasing The Amount Of Money It’s Raising As AI Demand Soars. Its Stock Is Flat.

Intel has increased its planned stock offering to $20 billion from $15 billion, seeking additional capital as booming artificial intelligence demand pushes the chipmaker to increase spending on manufacturing capacity.

The company priced the offering at $95 per share and expects the transaction to close on Aug. 12, subject to customary closing conditions.

Intel expects net proceeds of approximately $19.7 billion after underwriting discounts, commissions and estimated expenses, CNBC reported.

The chipmaker plans to use the money for "general corporate purposes," which could include capital expenditures and working capital. Its stock is largely flat as the broader indexes decline.

Intel initially announced a $15 billion offering Monday before increasing its size by $5 billion early Tuesday.

The upsized deal involves approximately 210.5 million shares, while underwriters have a 30-day option to purchase up to an additional $2.25 billion of stock, according to Intel.

Intel is spending heavily to increase production capacity amid rising demand for processors and other infrastructure used in AI data centers.

The company has identified physical AI, custom-built silicon and advanced packaging as major growth opportunities as technology companies pour hundreds of billions of dollars into data centers and computing infrastructure.

Intel shares initially fell following Monday's announcement as investors weighed the dilution from issuing billions of dollars in additional stock.

The $20 billion offering was priced at a roughly 1.3% discount to Intel's Monday closing price of $96.25, Reuters reported.

Intel has already increased its spending plans to respond to stronger demand.

Last month, the company raised its 2026 capital expenditure forecast to more than $20 billion, up from a previous plan of about $18 billion, with spending expected to increase meaningfully again in 2027.

Much of that investment will go toward manufacturing equipment, advanced chipmaking processes and packaging capacity.

Intel reported $16.1 billion in second-quarter revenue, up 25% from a year earlier, marking its fastest annual revenue growth in nearly 15 years.

Its Data Center and AI business generated $6.3 billion in revenue, up 59% year over year, as hyperscale and enterprise customers increased spending on AI infrastructure.

Intel Chief Financial Officer David Zinsner said during the company's earnings call that server demand was running ahead of available supply.

The company has also signed long-term agreements with customers to supply CPUs and other processors, with some contracts covering periods of three to five years and including commitments on both prices and volumes.

Intel's investments are expected to focus heavily on factory tooling as the company expands manufacturing of its advanced processors and attempts to establish its foundry business as a major alternative to Taiwan Semiconductor Manufacturing Co.

Intel stock has risen about 175% in 2026 and roughly fivefold over the past year, according to CNBC.

The company's turnaround has also received support from the U.S. government, which took a 10% equity stake in Intel in 2025 as Washington sought to strengthen domestic semiconductor manufacturing.

Despite the rally, Intel still faces the expensive task of expanding its manufacturing operations while competing against established chipmaking leaders.

Its foundry business generated $5.8 billion in second-quarter revenue, up 31% from a year earlier, as manufacturing yields and production improved.

The new stock sale gives Intel nearly $20 billion in additional cash to help fund that expansion.

Demand for the offering was strong enough for Intel to increase its size by one-third within a day, from the originally planned $15 billion to $20 billion, as the company positions itself for continued growth in AI computing demand.