Intel drops 4.62% in pre-market trading; the semiconductor giant plans to raise $15 billion to expand its AI investments, joining the AI infrastructure financing wave.

Intel announced plans to raise approximately $15 billion through a public common stock offering to strengthen its balance sheet and support investments in AI computing, self-developed chips, advanced packaging, external wafer foundry services, and "physical AI" related businesses. The company stated that the offering proceeds will be used for general corporate purposes, including capital expenditures and working capital, to support future growth opportunities while maintaining its investment-grade credit rating. Led by underwriters, the offering is not an "at-the-market" (ATM) stock sales program, meaning the shares have not yet been priced or sold. Underwriters are also expected to receive a 30-day overallotment option, allowing them to purchase up to an additional $2.25 billion in shares, bringing the total potential fundraising size to $17.25 billion. JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Citigroup serve as joint bookrunners. Intel’s stock has risen more than 175% year-to-date, but fell as much as 4.62% in premarket trading on Monday following the fundraising news. The financing comes as global AI infrastructure investment enters a phase of rapid expansion. This year, AI-related capital expenditures are projected to hit $1 trillion, with hyperscale cloud computing companies gradually shifting from relying on free cash flow and debt financing to equity financing. Alphabet, Google’s parent, has already raised large sums in the equity market, while Microsoft, Amazon, and Meta still rely primarily on cash flow, debt, leases, and structured financing to support their AI expansion. Goldman Sachs forecasts that capital expenditures for hyperscale cloud providers could rise further to $1.4 trillion by 2027. Intel’s latest fundraising is viewed as another example of the AI infrastructure investment wave, reflecting that as demand for AI computing power continues to grow, related companies are seeking more capital channels to support long-term expansion.