Why Intel Is Wise to Issue $20 Billion in Stock Right Now

Intel shares rose about 4.6% by midday Thursday after Bank of America analyst Vivek Arya revised its server CPU growth outlook. BofA increased its 2030 CPU total addressable market forecast to $210B from $170B, citing AI shifting toward inference and a more balanced GPU-to-CPU demand mix.

Intel (INTC) priced a $20 billion stock offering, upsized from $15 billion, after orders exceeded $100 billion, according to Bloomberg. Shares fell about 4% on announcement, but the final price was $95 per share, a 6.5% discount. Intel expects about $19.7 billion net proceeds, with proceeds tied to higher 2026 capex and 14A progress, per company and Bank of America.

Intel (INTC) announced a new common stock offering raising $20 billion, after initially targeting $15 billion. The shares were priced at $95, creating about 210.5 million new shares, with a 30-day greenshoe that could add up to $2.25 billion more. Intel said proceeds will fund capex and AI infrastructure; the stock fell on dilution concerns.

Bank of America said Intel’s INTC $20 billion stock offering could help fund its foundry expansion. BofA maintained a Buy rating, but cut its price target to $145 from $160, citing dilution from 210.5 million shares priced at $95 and weaker AI chip valuation multiples. BofA cited higher server average selling prices to about $1,200 in Q2 and flagged execution and advanced packaging competition risks.

Intel CEO Lip-Bu Tan invested $12 million of his own money in Intel as part of the company’s $19.7 billion stock offering. Bank of America said the raise signals management’s “increasing foundry conviction,” citing stepped-up capex and ongoing process progress, with more capex possible if external customer wins occur. The offering was oversubscribed, with about 33% of orders unfilled.

Intel reported fiscal 2Q26 revenue of $16.1 billion, up 25% YoY. EPS attributable to Intel was -$2.16, while non-GAAP EPS was $0.42. Cash from operations was $7.0 billion. For 3Q26, Intel forecast revenue of $15.8 billion to $16.8 billion and non-GAAP EPS of $0.38.