Intel Corporation (NASDAQ: INTC) shares slipped below the $95 per-share price set in its recent record equity offering, trading at $91.38 as of 11:50 a.m. EDT on Thursday. That marks a 1.5% decline from Wednesday's close and puts the stock 3.8% below the offering price, underscoring immediate losses for investors who bought into the deal.
The drop extends a 4% slide on Wednesday, the first full trading session after the company closed its massive capital raise. Intel issued 210.5 million shares, with underwriters holding an option for an additional 31.6 million shares. Net proceeds are estimated at $19.7 billion, nearly matching the company's projected 2026 gross capital spending of roughly $20 billion.
This near parity between new equity and planned spending shifts the focus from liquidity to investment returns. The capital infusion represents about 4% dilution to existing shareholders, or 4.6% if the underwriters' option is exercised. Intel's filing lists working capital and general corporate purposes among the uses, but the scale of the raise highlights the magnitude of its turnaround challenge.
Despite the stock weakness, Intel's operational results show improvement. Second-quarter revenue rose 25% year-over-year to $16.1 billion, with adjusted earnings of $0.42 per share, reversing a year-ago loss. Adjusted gross margin expanded 12.1 percentage points to 41.8%, and operating cash flow came in at $7.0 billion. The company guided third-quarter revenue to $15.8–$16.8 billion.
Chief Executive Lip-Bu Tan called the quarter the company's strongest revenue growth in over 15 years, citing "unprecedented demand for compute" driven by artificial intelligence. Intel expects AI demand to keep supply constrained, a positive signal for future pricing power.
The data center and AI segment led the gains, with revenue jumping 59% to $6.3 billion. Client and Physical AI revenue rose 13% to $8.9 billion, while Intel Foundry grew 31% to $5.8 billion, though the foundry division still posted an operating loss of about $2.1 billion.
Wall Street remains split on Intel's prospects. The average 12-month price target among 48 analysts is $114.88, according to StockAnalysis, with 32 analysts rating the stock a Hold. Targets range from a bearish $80 (Rosenblatt) to a bullish $200, reflecting divergent views on server demand, foundry execution, and returns on heavy capital investment.
The wide range of analyst opinions underscores the uncertainty. If AI demand exceeds forecasts, Intel could see higher revenue and utilization, boosting returns. Conversely, slower process ramps, weaker foundry demand, or additional dilution could weigh on the stock.
For now, the $95 offering price serves as a key psychological and technical level. Investors will be watching Intel's ability to convert its balance-sheet reset into tangible output growth. The next earnings report will provide a clearer picture of whether the capital is being put to productive use.
