Intel announces $20B stock offering, shares fall over 4%

Published Aug 12, 04:13 PM UTC

Intel (INTC) announced a $20 billion common stock offering, upsized from an initial $15 billion, causing shares to fall over 4% to $97.52. The move comes despite Intel stock surging 173% in 2026 and 362% over the past year. The company plans to use proceeds for capital expenditures in AI infrastructure, advanced packaging, and external wafer production. Intel reported strong Q2 results with $16.1 billion in revenue (up 25% YoY), beating estimates, and raised its 2026 capital spending outlook to over $20 billion. The Data Center and AI business revenue jumped 59% to $6.3 billion. However, the foundry business posted a $2.1 billion operating loss. Analysts remain divided, with Goldman Sachs raising its price target to $150 while maintaining a Neutral rating. The offering dilutes existing shareholders but strengthens Intel's balance sheet as it invests heavily in its turnaround and manufacturing expansion.