Why Intel's selling new stock
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Intel jumped on the piping hot equity sale bandwagon on Monday, announcing that it is selling $15 billion in new stock — Tuesday morning, the chipmaker upsized the offer to $20 billion, priced at $95 per share.
Why it matters: Intel is on an epic comeback run this year, thanks to the AI boom.
The big picture: The stock market is at all-time highs, and companies that have seen their stock prices surge this year are seizing the moment.
- Though it's fallen back from its record high in June, Intel's share price is still up an insane 150% this year to date — riding high on the AI boom and the U.S. government's support.
Zoom out: U.S. companies issued a record $252 billion in stock in the second quarter — through IPOs, SPACs and convertible bonds.
- That includes $105 billion in follow-ons, when U.S. companies that are already publicly traded, like Intel, sell more shares.
Between the lines: Companies need the cash to finance the AI buildout, as Axios' Matt Phillips wrote earlier this year.
