GoKawiilIntel announced on Tuesday it had upsized its previously announced common stock offering to $20 billion, with an offer price of $95 per share.
The chipmaker announced a $15 billion common stock offering on Monday to support skyrocketing customer demand for artificial intelligence computing power. Shares of Intel fell 4% in response.
Intel said the offering, set to close on August 12, is expected to raise net proceeds of $19.7 billion, after deducting underwriting discounts and commissions and estimated offering expenses.
Intel intends to use the proceeds "for general corporate purposes," it said, including, but not limited to, capital expenditures and working capital.
The chipmaker on Monday highlighted physical AI, purpose-built silicon and advance packaging among the major growth opportunities and said it will use the funding to support corporate needs, including capital expenditures and working capital,
Technology giants have shelled out trillions in recent years to meet insatiable AI demand and the unrelenting infrastructure build-out to support new compute capacity.
Several mega-cap tech companies boosted their capital expenditures on AI demand this earnings season, with spending on track to hit $765 billion this year and $1.2 trillion in 2027, according to estimates from Goldman Sachs . Amazon gave the highest guidance among the group this reporting period, citing the memory crunch.