Stock issuance expanded to $20 billion, and Intel institutional demand is said to exceed $100 billion
Comparing news, Citrini analyst Jukan said in an article on the X platform that the GF Securities Overseas Electronics Newsletter reaffirmed Intel's purchase rating and target price of $136, and believed that the stock offering would send a positive signal. The report predicts that Intel's foundry business will achieve break-even in the fourth quarter of 2027, and the profit margin leverage effect will be fully reflected in 2028. Yield and external customer expansion, particularly Apple-related developments, are progressing steadily, and EMIB's customer base is also expanding, including Google and AWS. Intel has received support from the substrate vendor Unimicron and will manufacture silicon capacitors in-house. The report raised Intel's 2026 and 2027 earnings per share expectations by 3% and 1%, respectively, and the target price remained unchanged at $136 after considering the effects of dilution.
Intel expanded its stock offering from the initial plan of $15 billion to $20 billion, and institutional demand is said to have surpassed $100 billion. The issue price is $95, and all over-allotment rights have been exercised. CEO Lip-Bu Tan and his family subscribed for approximately $12 million at the issue price. The report believes this reflects management's confidence in the company and may support FY2027 capital expenditure.
According to the report, Intel reiterated that the foundry business will achieve break-even by the end of 2027; if postponed to 2028, the main reason will be increased demand for new investment. The report maintains its previous judgment. The yield of 18A is expected to be around 80% in the second quarter of 2026, and CWF has entered a phase of climbing capacity. Cooperation with external customers continues to advance, and Apple's large-scale mass production of the 14A is particularly prominent. The report raised Intel's FY2027 and FY2028 back-end business revenue estimates to $1.1 billion and $7 billion, respectively, due to increased visibility into AWS Trainium3's adoption of EMIB-T in 2027, and Google's Humufish and Triggerfish will enter a phase of production expansion from the second half of 2027 to 2028. The report also predicts that AWS and Microsoft's ASIC products may adopt EMIB in 2028.
