Intel was once the world's largest semiconductor manufacturer, but it has since lost its crown to other chipmakers. Nevertheless, its stock skyrocketed in 2026 as AI memory and processing demand grew rapidly. Just as Intel's fortunes have changed over the years, so has its efforts to raise capital.
The company conducted its initial public offering in 1971, and it spent billions of dollars on share buybacks between 1990 and 2021, rewarding shareholders by reducing its outstanding share count. In 2024, Intel suspended its dividend so it could spend more cash on growth, and now, in 2026, it has had to resort to its first-ever secondary share offering to raise more cash. Intel has only conducted one secondary share sale since it went public in 1971.
On August 12, 2026, the chipmaker offered 210.5 million shares at $95 a share. The offering amounted to $20 billion, a $5 billion increase from a previously announced offering of $15 billion. Related: Intel's stock buybacks: History & investor impact explained Intel said the net proceeds amounted to around $19.7 billion, and it intends to use the money for general corporate purposes, including capital expenditures and working capital.
Intel has been spending money over the past few years on its artificial intelligence-related initiatives, including the manufacturing of chips with AI capabilities. Intel's stock has been trading at historically high prices as of mid-August 2026, even though the company lost money in 2024 and 2025. Intel took advantage of these high prices to raise capital via a share sale, rather than borrowing, which would have increased its debt load and weighed on its creditworthiness.
Intel's free cash flow turned negative in 2022, as it had been spending billions of dollars on its AI plans while also spending billions on dividends and share repurchases. It seems that Intel's cash strategy has shifted over the last five years, with the company suspending both stock buybacks and dividends, and even issuing new shares, prioritizing growth over rewarding shareholders. Any secondary share sale undertaken by a company runs counter to its stock buyback program.
While share repurchases reduce the number of outstanding shares and thus increase earnings per share, secondary share sales increase the number of shares available for trading in the open market and can lead to dilution of earnings per share. While stock buybacks help increase an investor's stake in a company in percentage terms, secondary offerings reduce the ownership stake of each existing share. Related: Intel's stock split history (& prospects) explained Intel's secondary share sale raised almost $20 billion, which is a fraction of the $153 billion worth of shares the chipmaker has bought back since 1990.
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