Intel Bets on $15 Billion Share Sale to Fund AI Chip, Foundry Expansion

Intel Corp. is launching a $15 billion share sale to fund investment in next-generation artificial intelligence chips and expand its foundry business.

The US chipmaker said Aug. 10 that it plans a public offering of $15 billion in common stock. JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley and Citigroup Inc. are serving as joint lead underwriters. They also have a 30-day option to purchase up to an additional $2.25 billion of common stock at the offering price, less underwriting discounts.

Intel said an unprecedented wave of investment in AI computing is sustaining a strong demand environment. It added that physical AI, advanced packaging, custom chips and the foundry market are opening up significant growth opportunities. The offering, Intel said, will let it pursue those opportunities more aggressively while maintaining a sound financial structure and an investment-grade credit rating.

The offering comes as Intel seeks to bolster its manufacturing competitiveness for the AI era. The company has long held strengths in central processing units, but it has lost ground in AI accelerators to Nvidia Corp. and others.

Intel also faces a need for substantial funding for its foundry business, which makes chips for other companies. The company is developing its next-generation 14A process and has said it aims to start mass production in 2028. Tesla Inc. was recently reported to have become a 14A customer.

Intel also needs to increase investment as demand for CPUs rises with the spread of AI agents. CPUs are needed for data preprocessing, input and output, storage and network control when large numbers of AI agents work simultaneously. Intel executives said earlier this year that server CPU demand tied to the spread of AI agents was rising faster than expected and had exceeded production capacity. In July, the company raised its capital expenditure outlook for this year to $20 billion from $18 billion to meet growing demand for AI semiconductors.

Intel shares have also strengthened since the second quarter. The stock closed at $36.90 on Dec. 31, 2025, and climbed as high as $142.35 intraday on June 30, 2026.

Son Ju-hyung, Hankyung.com reporter handbro@hankyung.com