The chipmaker aims to fund expansion in contract manufacturing after its stock surged over 100% this year.
Intel announced a $15 billion share sale to finance its push into contract chip manufacturing, capitalizing on a stock rally driven by turnaround efforts. The move follows a more than doubling of its shares in 2024, outpacing competitors as it invests in new facilities and advanced packaging technology to compete with TSMC and others.
Premarket trading saw Intel shares drop over 3%, reflecting investor concerns about dilution from the offering. The company also granted underwriters a 30-day option to purchase up to $2.25 billion in additional shares at the offer price, minus discounts. JPMorgan, Goldman Sachs, Morgan Stanley, and Citigroup are managing the sale.
Intel’s expansion strategy targets reclaiming leadership in the semiconductor industry, where it has faced challenges from rivals in recent years. The share sale underscores its aggressive approach to funding growth amid a broader market recovery for chip stocks.