Intel (INTC) stock fell more than 3% in premarket trading on Monday after the chipmaker announced a proposed $15 billion underwritten public offering of common stock.
The drop came on dilution concerns, as the offering will increase the total number of outstanding shares. Intel stock has more than doubled in 2026, so the company is cashing in on that rally to fund its next big push.
Intel plans to use the net proceeds for general corporate purposes, capital expenditures, and working capital. The company is in the middle of a costly buildout of its chip contract manufacturing business, known as its foundry unit.
Intel raised its capital expenditure forecast for 2026 from $18 billion to $20 billion back in July. That increase came as demand for AI compute pushed customer orders beyond the company’s current manufacturing capacity.
Intel’s foundry unit has been quietly building momentum. Tesla has been confirmed as a customer for Intel’s 14A manufacturing process, which is slated for high-volume production in 2028.
Intel had previously warned that the 14A process could be shelved without a major external customer. That risk looks less likely now.
Speculation around another big customer heated up after President Trump said Apple would make processors with Intel. Neither Intel nor Apple has confirmed the deal.
Intel is targeting high-growth areas including physical AI, purpose-built silicon, advanced packaging, and external wafer production. Management says customer demand in these areas is strong and sustained.
The offering includes an option for underwriters to buy up to $2.25 billion in additional shares within 30 days at the offer price, minus applicable discounts.
JPMorgan Securities, Goldman Sachs, Morgan Stanley, and Citigroup Global Markets are acting as joint book-running managers on the deal.
Intel says it will maintain fiscal discipline, aligning spending with customer demand and return targets. The company has also committed to protecting its investment-grade credit rating.
The AI agent boom has been a key driver of demand for central processing units, which sits squarely in Intel’s wheelhouse. Executives have said orders are outpacing current capacity.
Intel is competing against TSMC in the contract chip manufacturing space. The $15 billion raise is one of the largest equity offerings in the chip sector in recent years.
At the time of writing, INTC was trading down around 3% in premarket, pulling back from a year-to-date gain of over 100%.
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