Intel is raising $20 billion through a stock offering, upsizing from an originally planned $15 billion. The chipmaker priced the deal at $95 a share, a 6.5% discount to its Friday closing price.
The company will issue 210.5 million shares of common stock. Underwriters were also granted a 30-day option to purchase up to an additional 31.6 million shares.
Net proceeds from the offering are expected to come in at around $19.7 billion. Intel said the funds will be used for general corporate purposes.
INTC fell 4.1% to close at $97.52 on Monday when the offering was first disclosed. The stock was trading down around 1% in premarket Tuesday.
The stock has had a strong run this year, up more than 160% through Monday’s close. That recovery made a capital raise through share sales widely expected on Wall Street.
Intel is one of the more capital-hungry names in the chip sector right now. The company has been burning through cash as it works to build out manufacturing capacity.
Management raised its 2026 capital expenditure estimate to more than $20 billion during its most recent earnings call, up from roughly $18 billion. The bump reflects growing demand for its products.
Free cash flow is expected to be modestly negative this year. Between 2022 and 2025, the company burned through a cumulative $44 billion in free cash flow.
The foundry unit continues to book quarterly losses. Intel is betting that its 18A and future 14A chip manufacturing processes will attract outside customers and help offset those losses over time.
Intel’s stock recovery this year has been tied to renewed optimism around its broader turnaround plan. The company is working to reclaim its position in chip manufacturing after ceding ground to rivals.
The offering was first reported by Bloomberg before Intel confirmed the upsized deal late Monday. The company had originally planned to raise $15 billion.
INTC was one of Barron’s top stock picks for 2026. Despite the strong year-to-date gain, the stock is down about 19% over the past three months.
At $97.52 at Monday’s close, Intel carries a market cap of around $492 billion.
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