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Intel upsized its previously announced common stock offering to $20 billion on Tuesday, pricing 210,526,315 shares at $95 per share as it looks to fund expansion of its chip contract manufacturing business.

The offering was increased from the $15 billion target Intel had announced on Monday. The deal is expected to close on August 12, the company said, and is expected to generate net proceeds of approximately $19.7 billion after underwriting discounts, commissions, and estimated offering expenses. Intel has also granted underwriters a 30-day option to purchase up to 31,578,947 additional shares at the offering price.

Intel stated that proceeds will go toward general corporate purposes, a category the company said could encompass capital expenditures and working capital needs. J.P. Morgan, Goldman Sachs & Co. LLC, Morgan Stanley, and Citigroup are acting as joint book-running managers.

Intel's shares dropped more than 4% on Monday after the company revealed the initial offering, according to CNBC. The $95 per share offering price represented a discount of 2.6% from the previous close, according to Reuters.

Intel has been investing to compete in contract chip manufacturing while demand for its central processing units has outpaced available manufacturing capacity. In July, Intel revised its 2026 capital expenditure target upward to $20 billion from $18 billion, and the company has committed to achieving high-volume production with its 14A process node by 2028. Tesla has signed on as a customer for the 14A process through Intel's foundry division.

Last month Intel disclosed plans to pour €5 billion ($5.77 billion) into its Irish chip manufacturing operations as part of a broad capacity expansion effort, according to Reuters. Chief Financial Officer David Zinsner said at the time that the company's supply could not keep pace with customer demand.

Intel's share price is up 175% so far in 2026 and has gained roughly five times its value compared with a year ago, according to CNBC. Analysts had widely noted that Intel's climbing valuation made some form of equity issuance increasingly probable as a means of financing its growth ambitions.

"As a capital-intensive business that went a long way to wrecking its own balance sheet and prospects by focusing on financial engineering rather than physical engineering, courtesy of $82 billion of share buybacks in the 2010s, it makes perfect sense for Intel to raise money, especially after a five-fold increase in the stock price since last August," Russ Mould, investment director at AJ Bell, said.