Intel Raises $20 Billion to Expand AI Manufacturing

Intel Corporation raised $20 billion through an upsized public share offering to fund the expansion of its contract manufacturing foundry and advanced packaging capabilities. Initially targeted at $15 billion, the offering was increased due to high demand and priced at $95 per share. The capital raise, the company's first public stock sale since 1971, follows a significant stock rally and a surge in demand for AI-related central processing units.

Intel intends to use the proceeds for general corporate purposes, including capital expenditures and working capital. The company increased its 2026 capital expenditure forecast to over $20 billion to accelerate the construction of semiconductor fabs in Arizona and Ohio and to invest in factory tooling. This strategy includes a $5.77 billion investment to expand manufacturing operations in Ireland. Intel may also use the funds to buy out Brookfield Infrastructure Partners' stake in its Arizona facilities.

To challenge the market leadership of Taiwan Semiconductor Manufacturing Company, Intel has secured Tesla as a customer for its 14A manufacturing process and contracted with Fortinet to produce next-generation security chips. While President Donald Trump stated that Apple would manufacture processors with Intel, neither company has confirmed the partnership. Investors initially reacted to the news with a stock slide due to dilution concerns, though shares later rose to $102. CEO Lip-Bu Tan and a family member participated in the sale by purchasing $12 million in shares.