Intel is seeking to raise US$15 billion through a major share sale as the chipmaker moves to capitalise on surging demand for AI computing and fund further investment in its semiconductor business.

The proposed underwritten offering, announced Monday, comes after a sharp recovery in Intel’s share price. The company is also increasing its spending on manufacturing, packaging and emerging AI-related technologies.

Intel said the proceeds will be used for general corporate purposes, including capital expenditure and working capital, as it seeks to pursue new growth opportunities while maintaining its balance sheet and investment-grade credit rating.

The offering includes a 30-day option for underwriters to purchase up to a further US$2.25 billion of shares.

Bloomberg has reported that the offering could ultimately be increased to around US$20 billion, with investor demand reportedly exceeding US$100 billion. Reuters said it could not independently verify those details.

Intel Ramps Up AI Investment

The capital raising comes as Intel accelerates investment in its manufacturing and foundry operations.

The company increased its 2026 capital expenditure forecast to about US$20 billion in July, up from US$18 billion, as demand for CPUs linked to AI workloads increases. Intel is also moving ahead with its next-generation 14A manufacturing process, with high-volume production targeted for 2028.

Intel recently announced a €5 billion investment to upgrade and expand its manufacturing operations in Ireland, while its foundry business continues to pursue major external customers.

The company has also identified advanced packaging and external wafer production as areas where it sees potential growth.

Shares Rally 

Intel’s decision to raise equity follows a substantial rise in its share price this year.

The stock has nearly tripled in 2026, according to Reuters, outperforming major semiconductor rivals and the broader Philadelphia Semiconductor Index.

Shares fell more than 4% on Monday following news of the proposed offering.

The capital raising still gives Intel access to additional funding without relying entirely on debt as it continues to invest in manufacturing capacity and new technologies.

Intel said it remains focused on aligning capital deployment with customer demand and expected returns.

AI Driving Demand

Intel’s move comes as technology companies continue to increase spending on infrastructure required to support AI.

The company said customer demand is being driven by what it described as unprecedented investment in AI computing.

That demand extends beyond graphics processors, with CPUs, purpose-built chips, networking, memory and advanced packaging all playing roles in AI infrastructure.

Intel has been positioning its Xeon processors and foundry operations to capture part of that expanding market.

The company’s challenge is to convert the renewed demand into sustained revenue growth while funding the substantial requirements associated with manufacturing.

The US$15 billion offering is the latest step in that strategy and provides Intel with additional capital as it pursues its manufacturing turnaround and expands its presence in AI-related computing.