Intel has officially expanded its recently announced common stock offering to $20 billion, setting the price at $95 per share as the company moves to capture unprecedented demand for artificial intelligence computing power. The chipmaker initially announced a $15 billion stock offering on Monday, but quickly upsized the deal after strong market interest. Shares of Intel initially dropped 4% following the initial announcement, reflecting typical short-term market adjustments to stock dilution.

The company stated that the transaction, which is scheduled to close on August 12, should net roughly $19.7 billion after accounting for underwriting discounts, commissions, and estimated expenses. Intel intends to use the proceeds “for general corporate purposes,” which includes funding capital expenditures and strengthening working capital. In its initial announcement, the business highlighted physical AI, purpose-built silicon and advance packaging among the major growth opportunities, that require immediate financial support.

This massive capital raise comes at a time when technology giants are spending hundreds of billions, to expand data centers and build out infrastructure for artificial intelligence. Recent estimates from Goldman Sachs indicate that tech spending in this sector could reach $765 billion this year, and climb further to $1.2 trillion in 2027. Amazon recently provided the highest capital expenditure guidance among its peers, pointing to an ongoing memory crunch as a key driver of rising costs.

Intel has experienced a dramatic financial turnaround recently. Last month, Intel posted its fastest revenue growth in nearly 15 years and hiked capital expenditures guidance to $20 billion, citing strong customer demand. Speaking about the aggressive spending plan, finance chief David Zinsner noted that most of the budget would be directed toward factory tooling. He told CNBC that the company is bracing for a “meaningful increase” in 2027.

Investors have responded enthusiastically to the company’s progress and strategic positioning. Intel shares have benefited over the last year from the AI infrastructure build-out and the U.S. government’s 10% equity stake aimed at bolstering domestic chip manufacturing. Its stock price has surged 175% in 2026 and quintupled in value over the last year, reflecting strong market confidence in its long-term manufacturing trajectory. The overall stock offering also grants underwriters a 30-day option to purchase an additiona