Intel fell 4.62% before the market, and the company plans to raise $15 billion to expand AI investment and join the AI infrastructure financing wave

Comparatively, Intel (Intel) announced plans to raise approximately $15 billion through a public offering of common shares to enhance its balance sheet and support investment in AI computing, self-developed chips, advanced packaging, external foundry services, and physical AI related businesses.

The company said the proceeds from this fundraising will be used for general corporate purposes, including capital expenditure and working capital, to support future growth opportunities while maintaining an investment-grade credit rating.

The offering is led by underwriters and is not an ATM program that sells shares at any time. Currently, shares have not been priced or sold. Underwriters are also expected to receive 30-day overallocation rights to purchase up to $2.25 billion in additional shares, bringing the capital raised to a maximum of $17.25 billion. J.P. Morgan Chase, Goldman Sachs, Morgan Stanley, and Citibank act as joint bookkeepers.

Intel's stock price has accumulated a cumulative increase of more than 175% since this year, but due to fund-raising news, it fell 4.62% before the market on Monday.

The financing comes at a time when global AI infrastructure investment is entering a phase of rapid expansion. According to reports, AI capital expenditure is expected to reach 1 trillion US dollars this year, and hyperscale cloud computing companies are gradually shifting from relying on free cash flow and debt financing to equity financing.

Previously, Google's parent company Alphabet had already entered the equity market on a large scale to raise capital, while Microsoft, Amazon, and Meta still mainly relied on cash flow, debt, leases, and structured financing to support AI expansion. Goldman Sachs anticipates that capital expenditure for hyperscale cloud vendors may rise further to $1.4 trillion in 2027.

Intel's current fund-raising is viewed as another example of the AI infrastructure investment wave, showing that as demand for AI computing power continues to expand, related companies are seeking more capital channels to support long-term expansion.

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