Intel has announced plans to raise 15 billion dollars through a major share sale to fund its expensive chip manufacturing expansion. The silicon giant hopes to cash in on a massive stock surge this year as it attempts to challenge market leader TSMC in the contract foundry business. However, Wall Street reacted with caution, sending Intel shares down by more than 4% in early trading following the news.
According to a report by Reuters, the stock has nearly tripled this year, easily outrunning competitors like Nvidia and AMD. Financial analysts had predicted that the rising share price would open the door for an equity raise to back the aggressive manufacturing goals of the company. Intel had previously spent decades on buybacks, but investment experts note that pivoting back to physical factory construction makes sense given the current market momentum.
Surging demand for central processing units to run AI agents has pushed the manufacturing limits of the company. This squeeze forced Intel to increase its capital spending budget for the year to 20 billion dollars. Part of this cash will support the high volume production of the advanced 14A process, which is scheduled to begin in 2028. The foundry business recently secured Tesla as a key client for the 14A node, while rumors continue to circulate regarding a potential processor partnership with Apple.
Expansion efforts are already underway globally, including a 5.77 billion dollar upgrade to a factory in Ireland, which represents more than 25% of the projected capital spending for 2026. To execute the share sale, Intel is working with major financial institutions including JPMorgan, Goldman Sachs, Morgan Stanley, and Citigroup. The underwriters will have a 30 day option to purchase an additional 2.25 billion dollars in stock. This capital influx will determine whether the foundry division can successfully secure its position as a major alternative to Asian chip manufacturers.
