Intel to raise $15 billion in stock sale as AI demand fuels manufacturing push

Intel has announced plans to raise around $15 billion through a public sale of its shares, as the chipmaker increases spending on manufacturing and looks to benefit from rising demand for artificial intelligence (AI) computing.

The company said it will sell common stock and use the money for general corporate needs, including capital spending and working capital. The funds will help Intel expand its chip manufacturing and its foundry business, where it makes chips for other companies.

"Customers continue to signal a strong and sustainable demand environment, driven by unprecedented investment in AI compute. Progress in emerging areas including physical AI, purpose-built silicon, advanced packaging and external wafers represent significant growth opportunities for Intel," the statement read.

The company also said there is unprecedented investment in AI computing. It sees opportunities in areas including physical AI, chips designed for specific uses, advanced packaging and manufacturing chips for other companies.

These areas are expected to be important for Intel as it tries to expand its foundry business and reduce its dependence on making chips only for its own products.

" Intel intends to use the net proceeds from the offering for general corporate purposes, which may include, but are not limited to, capital expenditures and working capital. The offering is intended to further enable Intel to pursue the growth opportunities ahead while maintaining a strong balance sheet and its commitment to an investment-grade rating," the company said.

Expanding chipmaking technology

The share sale comes as Intel increases its spending. In July, the company raised its 2026 capital expenditure forecast to more than $20 billion. This reflects the high cost of expanding its factories and developing more advanced chipmaking technology. Intel’s latest quarterly revenue rose 25% year-on-year to $16.1 billion, its strongest growth in several years.

Intel’s shares fell more than 4% in after-hours trading after the announcement as investors reacted to the possibility of their ownership being diluted by the new shares. The stock had, however, risen more than 160% in 2026 before the decline, helped by optimism around Intel’s turnaround and its position in the AI chip market.

The fundraise comes as Intel is already spending heavily on its AI and manufacturing push. In the first half of 2026, the company spent $6.2 billion on capital expenditure, while research and development expenses stood at around $6.7 billion. Intel has also raised its full-year 2026 capital expenditure forecast to more than $20 billion, from an earlier estimate of $17 billion-$18 billion.

Much of this spending is going towards advanced manufacturing, chipmaking technology and packaging, which Intel sees as important to meeting AI-related demand. Its Data Center and AI business grew 40% in the first half of 2026 to around $11.5 billion in revenue.