Intel shares dropped early Monday after the company said it plans to raise $15 billion by selling stock. This highlights the high costs of its ongoing efforts to expand production.
The stock fell 3.3% after Intel filed an S-3 shelf registration for the offering. This lets companies register securities with regulators ahead of time, without having to sell them right away. Intel also said it plans to give underwriters a 30-day option to buy up to $2.25 billion more in shares at the final offering price, which is still to be decided.
This move matches what Intel has signaled recently. On its latest earnings call, management said it is raising its 2026 capital spending estimate to over $20 billion, up from about $18 billion, as the company tries to keep up with growing demand for its products.
FactSet expects Intel’s free cash flow to stay slightly negative this year, after a total negative $44 billion from 2022 to 2025. Still, Intel is investing heavily, hoping its current and next-generation chip manufacturing will bring in outside customers and help balance losses in its foundry business.
In a statement Monday, Intel said customer demand is still strong and steady, thanks to major investment in AI computing. The company also highlighted new opportunities in areas like physical AI, custom silicon, advanced packaging, and external wafer production as important ways to grow in the future.
Intel’s stock, which Barron’s picked as a top choice for 2026, is still up more than 175% for the year as of Friday’s close, even though it has dropped 21% in the last three months.has context menu
