Intel puts $15 billion of stock on offer — 75 percent of this year's capital budget
The offering, announced 10 August with a 30-day option for another $2.25 billion, dilutes shareholders roughly 3 percent. Intel had already raised 2026 capital spending from $18 billion to about $20 billion, and Intel Foundry booked a $2.1 billion operating loss last quarter on $293 million of external revenue.
Put the two numbers next to each other. External foundry revenue of $293 million against a $2.1 billion operating loss means the contract manufacturing business is spending roughly seven dollars for every dollar it brings in from outside customers. That is not a business yet; it is a construction project with a sales team attached.
Which is why the equity raise is the honest instrument. Debt against those cash flows would be expensive and covenant-heavy. Selling 3 percent of the company after a share price that has risen sharply is the cheapest capital Intel is going to see, and management is taking it while the window is open rather than when the need is acute.
The competitive backdrop makes the urgency legible: TSMC's July sales rose 45 percent year over year. Intel is not trying to close that gap this cycle. It is trying to still be a credible second source when the current buildout's replacement cycle arrives, and that requires capacity and advanced packaging in place before the orders exist.
For buyers, a funded Intel Foundry is worth more than a profitable one right now. The entire AI supply chain routes through a single Taiwanese firm, and every hyperscaler negotiating 2027 capacity would rather do it with an alternative on the table.
Intel Newsroom — Intel Announces Proposed $15 Billion Common Stock Offering → · MLQ — Intel plans $15 billion stock offering to fund AI and foundry expansion →