Intel Boosts Stock Offering to $20 Billion Amid Surge, Aiming to Challenge TSMC

Intel Corporation (INTC-US) announced late Monday that it has expanded its planned stock offering from $15 billion to $20 billion. The chipmaker is raising capital amid a recent surge in its stock price to expand manufacturing capacity.

Intel said the offering is priced at $95 per share, a 6.5% discount to Friday's closing price before the increase was announced. The company expects to raise approximately $19.7 billion from the offering, which will be used for general corporate purposes.

Once the dominant force in the global semiconductor industry, Intel is now making significant investments in new factories and advanced packaging capabilities to challenge industry leaders like TSMC (TSM-US) (2330-TW) in the foundry market.

Concerns over potential dilution of existing shareholders and earnings per share caused Intel's stock to close down 4% on Monday, ending at $97.52 per share, though it rebounded 0.8% in after-hours trading.

Despite the Monday decline, Intel's stock has more than doubled year-to-date as of Monday's close, outperforming AMD (AMD-US), NVIDIA (NVDA-US), and the Philadelphia Semiconductor Index, which has gained nearly 75% this year.

Multiple analysts have noted that Intel's soaring stock price increases the likelihood of raising equity to fund its aggressive expansion plans.

With the rise of AI agents, demand for central processing units (CPUs) has surged beyond Intel's current production capacity. As a result, in July, Intel raised its annual capital expenditure forecast from $18 billion to $20 billion.

Intel has committed to mass-producing chips using its 14A process by 2028. The company previously warned it might delay this advanced technology if it fails to secure major external customers.

Tesla (TSLA-US) is already a customer for Intel's 14A process, and market expectations are growing that Apple (AAPL-US) could become another flagship client after former U.S. President Trump claimed Apple would use Intel-made processors. However, neither Intel nor Apple has confirmed the report.