Intel Corp. shares fell nearly 5% in pre-market trading on Monday after the chipmaker announced plans to raise $15 billion through a stock offering, seeking to capitalise on a sharp rally in its shares over the past year.
Intel shares were down 4.67% at $96.90 in pre-market trade, compared with their previous close of $101.65. The stock has surged more than 400% over the past 12 months, giving the company an opportunity to raise fresh capital at elevated valuations.
The company said customer demand remains strong and sustainable as artificial intelligence reshapes the technology industry. Intel sees "significant growth opportunities" in areas including physical AI, custom silicon, advanced chip packaging and external wafer manufacturing.
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The proceeds from the proposed offering will be used for general corporate purposes, including capital spending, Intel said. The company added that the fundraising is intended to support growth while preserving its investment-grade credit rating.
Underwriters will have a 30-day option to purchase up to an additional $2.25 billion of Intel's common stock at the public offering price, the company said. J.P. Morgan, Goldman Sachs, Morgan Stanley and Citigroup are serving as joint book-runners for the offering.
The stock sale comes after Intel reported its strongest revenue growth in 15 years in its June quarter. The company benefited from stronger demand for its data-centre central processing units, as the expansion of agentic AI applications boosts demand for computing power.
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Intel has also been able to raise prices as demand for its CPUs outpaces supply.
The company raised its 2026 capital spending guidance to more than $20 billion during its latest earnings call. Management indicated that spending could rise significantly further in 2027 as Intel seeks to expand its position in the rapidly growing AI infrastructure market.
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