Intel expanded its stock offering and raised $20 billion

Intel raised $20 billion through an expanded secondary offering—a third more than its initial target. According to Bloomberg sources, demand for Intel shares exceeded $100 billion. The company sold the shares at $95 apiece, a 6.5% discount to the closing price on August 7. Net proceeds will total approximately $19.7 billion. The chipmaker plans to use the funds for “general corporate purposes,” including financing capital expenditures and replenishing working capital.

The offerings demonstrated just how strong investor appetite is for securities of companies tied to the boom in artificial intelligence spending. The AI sector accounts for the largest deals on the U.S. stock market this year, Bloomberg notes: Alphabet plans to raise up to $85 billion, while Oracle’s plan calls for a $20 billion public offering. South Korea’s SK Hynix raised $26.5 billion in its debut offering of American Depositary Receipts—a record for a foreign company on a U.S. stock exchange.

Intel’s stock price was down 1% on August 11 ahead of the market open in New York, following a 4.1% drop the previous day—the market’s reaction to the announcement of the offering. However, the stock has risen by approximately 164% since the beginning of the year: Intel’s new CEO, Lip-Bu Tan, has begun to get the company’s finances in order and has attracted outside investment—from the U.S. government and even from competitors such as Nvidia, Bloomberg notes.

Wall Street expects Intel to continue its growth. The consensus among 47 analysts surveyed by S&P Global is “Outperform,” and the average target price of $114.05 implies a 17% increase in the stock price over the next year.

This article was AI-translated and verified by a human editor