(Aug 10): Intel Corp is seeking to raise US$15 billion (RM61.36 billion) worth of new stock in what may be its first public share sale since it listed in 1971, capitalising on renewed interest in its prospects driven by the artificial intelligence (AI) data centre boom.

The money will be used for general purposes, Intel said in a statement on Monday. “The offering is intended to further enable Intel to pursue the growth opportunities ahead,” the company said, noting emerging markets for physical uses of artificial intelligence and purpose-built silicon.

The chipmaker’s stock fell as much as 5.3% in New York trading to US$96.30 on Monday following the announcement. The company’s shares are still up more than 160% this year, lifting its market value to close to US$500 billion. 

Selling shares to investors who’ve shown renewed faith in the company helps further cushion a balance sheet that had become burdened with debt from turnaround efforts. Chief executive officer Lip-Bu Tan made cleaning up Intel’s finances an early priority, attracting outside investments from the US government and rivals.

Intel is building up cash reserves with a goal of taking on a more central role in the AI boom. The worldwide expansion of data centres key to powering AI systems has bolstered demand for its general processors and its finances, but the company still lacks an AI-specific business capable of competing head to head with Nvidia Corp and Advanced Micro Devices Inc products that dominate the market. It also needs funds to build out a factory network it wants to serve as an outsourced manufacturing hub for the whole of the technology industry. 

Sales in Intel’s data centre segment soared 59% last quarter, more than double the pace of Intel’s overall revenue. Still, the company is working to line up significant outside customers for its factories.

Proceeds from the share sale will provide “substantial capacity” to fund AI, foundry and other projects without adding leverage, Bloomberg Intelligence analyst Robert Schiffman wrote in a note. “Intel also reinforces a broader theme across AI infrastructure: rising investment doesn’t have to fall entirely on bondholders,” he said, drawing comparisons to Oracle Corp, SpaceX, Alphabet Inc, Meta Platforms Inc and Microsoft Corp.

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