Intel announces $15 billion stock offering to fund AI chip design and foundry expansion
Intel Corp. is launching a $15 billion share sale to fund investment in next-generation artificial intelligence chips and expand its foundry business. The company announced the public offering on August 10, with JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley, and Citigroup Inc. serving as joint lead underwriters. The underwriters hold a 30-day option to purchase up to an additional $2.25 billion of common stock at the offering price, less underwriting discounts.
Intel cited an unprecedented wave of investment in AI computing as sustaining strong demand. The company identified significant growth opportunities in physical AI, advanced packaging, custom chips, and the foundry market. The offering will enable Intel to pursue these opportunities more aggressively while maintaining a sound financial structure and an investment-grade credit rating.
The share sale addresses two pressing needs. First, Intel's foundry business, which manufactures chips for other companies, requires substantial capital. The company is developing its next-generation 14A process and aims to begin mass production in 2028. Tesla Inc. was recently reported as a customer for the 14A platform. Second, demand for CPUs is rising sharply with the proliferation of AI agents, which require processing for data preprocessing, input and output, storage, and network control when operating simultaneously. Intel executives reported earlier this year that server CPU demand tied to AI agents has risen faster than expected and exceeded production capacity.
In July, Intel raised its capital expenditure outlook for the year from $18 billion to $20 billion to address this growing demand for AI semiconductors. The company faces competitive pressure in AI accelerators, where it has ceded ground to Nvidia Corp. and others, even as it maintains traditional strengths in central processing units. Intel's stock closed at $36.90 on December 31, 2025, and reached an intraday high of $142.35 on June 30, 2026.