INTC Stock Gains Overnight: Chipmaker Raising Share Sale To Over $20B?

• The offer is the first public share sale since the chipmaker listed in 1971, and signals Intel’s bid to extend its turnaround and capitalize on the AI boom.
• Alphabet previously filed to raise $85 billion through equity sales, while Oracle has outlined plans for a $20 billion at-the-market share sale.
• Stocktwits sentiment for INTC shifted to ‘bearish’ from ‘neutral.’

Intel Corp. is reportedly raising its stock offer to over $20 billion from the official $15 billion it announced on Monday, Bloomberg reported, citing people familiar with the matter.

The chipmaker is poised to price the offering at around $95 per share or above, according to the report, which would represent a discount of 6.5% to Friday’s closing price. Intel hasn’t formally announced the pricing. 

It is the first public share sale since the chipmaker listed in 1971, and signals its bid to extend its turnaround and capitalize on the AI boom.

The deal also underscores continued investor appetite for companies tied to the AI supply chain. AI-driven spending has featured prominently among the year’s largest U.S. equity offerings. 

Alphabet is seeking to raise as much as $85 billion through equity sales, including at-the-market offerings and equity-linked transactions, while Oracle has outlined plans for a $20 billion at-the-market share sale.

The chipmaker’s shares fell 4.1% to $97.52 on Monday after the announcement, as investors typically view new share offerings negatively because they dilute existing holdings. Shares rose nearly 1% in overnight trading.

Intel’s Share Issue

Intel said it would use the proceeds for general corporate purposes, which may include capital expenditures and working capital.

“The offering is intended to further enable Intel to pursue the growth opportunities ahead,” the company said in a statement Monday. The money is meant to help Intel tap new markets, such as real-world uses of artificial intelligence and purpose-built silicon.

The offer has a greenshoe option to issue additional shares worth up to $2.25 billion at the public offering price to the underwriters. J.P. Morgan Securities, Goldman Sachs, Morgan Stanley and Citigroup Global Markets are the joint book-running managers for the proposed offering.

Intel’s Turnaround

After Intel appointed Lip-Bu Tan as its CEO and the U.S. government picked up a 10% stake last year, Intel’s stock has rallied handsomely. Under Tan, Intel is showing improvement in its long-struggling foundry business, including onboarding marquee customers like Apple and SpaceX.

Intel Foundry’s operating loss narrowed to $2.4 billion in the first quarter, improving by $72 million sequentially, helped by better yields across Intel 4, 3, and 18A processes.

Retail View On INTC

On Stocktwits, the retail sentiment for INTC dropped to ‘bearish’ from ‘neutral’ over the weekend.

“INTC Dilution again. Those buy bellow $90 $+sill ok. $1.00 Above must be sad. This games on again. I prefer stay aside. Let the dust settle down. No more play at his moment,” a trader said.

Intel stock fell sharply in July but remains 164% higher year to date.

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