Intel CEO Lip-Bu Tan has made a major purchase of Intel stock as the chipmaker ramps up its AI ambitions. Tan purchased 105,263 Intel (INTC) shares for $95 each on Aug. 11, spending roughly $10 million, according to a Form 4 he filed with the Securities and Exchange Commission. The purchase increased his beneficial ownership to about 1.33 million shares.
The insider buy comes at a pivotal time for Intel. The company just raised nearly $20 billion in fresh equity as it ramps up spending on manufacturing and tries to turn its foundry business into a credible alternative to Taiwan Semiconductor Manufacturing (TSM). Intel shares have surged roughly 162% this year after investors grew more optimistic about the chipmaker's turnaround and AI prospects, although the stock has pulled back roughly 26% from its June high.
Intel last week sold about 210.5 million shares at $95 each, increasing the offering from an initially planned $15 billion to $20 billion after strong investor demand. The offering was priced at roughly a 2.6% discount to Intel's previous closing price and reportedly attracted more than $100 billion in orders. Intel expects net proceeds of roughly $19.7 billion and plans to use the money for general corporate purposes, including capital expenditures and working capital.
Related: Cathie Wood sells $11.6 million of surging tech stock The new shares dilute existing shareholders, but they also give Intel more cash to fund an increasingly expensive turnaround without taking on another large chunk of debt. Intel recently increased its 2026 capital expenditure forecast from $18 billion to more than $20 billion, with spending expected to rise further in 2027. The company is also pushing ahead with its next-generation 14A manufacturing process, which is expected to reach high-volume production in 2028.
Intel's latest results gave investors more reason to believe the turnaround is gaining traction. On July 23, the company reported second-quarter adjusted earnings of 42 cents a share on revenue of $16.13 billion. Analysts had expected adjusted earnings of 21 cents a share and revenue of about $14.4 billion.
Revenue jumped 25% from a year earlier, Intel's strongest year-over-year growth in more than 15 years. The Data Center and AI business was particularly strong, with revenue surging 59% to $6.3 billion. Client Computing and Physical AI revenue increased 13% to $8.9 billion, while Intel Foundry revenue climbed 31% to about $5.8 billion.
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