NEW YORK (Web Desk) - Intel plans to raise $15 billion through a share sale as the chipmaker seeks to finance the costly expansion of its contract manufacturing business amid a sharp rise in its stock price.
The company is investing heavily in new manufacturing facilities and advanced packaging capabilities as it seeks to challenge Taiwan Semiconductor Manufacturing Co (TSMC) in the contract chip manufacturing market.
Intel shares fell more than 4pc in early trading on Monday, with investors concerned about dilution. The stock had nearly tripled this year by the previous close, outperforming AMD and Nvidia, while the Philadelphia Semiconductor Index had gained nearly 75pc.
Analysts have said Intel's strong share-price performance has increased the likelihood of an equity raise to finance its expansion plans.
The shift towards AI agents has boosted demand for central processing units, prompting Intel to raise its 2026 capital expenditure forecast from $18 billion to $20 billion in July.
Intel has also committed to high-volume production using its 14A manufacturing process in 2028, after previously warning that the technology could be shelved without securing a major external customer.
The company's foundry business has secured Tesla as a 14A customer, while expectations of another major customer increased after US President Donald Trump said Apple would manufacture processors with Intel, although neither company has confirmed the arrangement.
Last month, Intel announced a $5.77 billion investment to upgrade and expand its chip manufacturing operations in Ireland, representing more than 25pc of its planned 2026 capital expenditure.
Intel said underwriters would have a 30-day option to purchase up to $2.25 billion worth of additional shares at the offering price, less discounts. JPMorgan Securities, Goldman Sachs, Morgan Stanley and Citigroup Global Markets are serving as joint book-running managers.