Intel Raises $15B In Common Stock Offering

Dan Niles on X Is $INTC about to be "super successful?" When they were asked on their July 23rd earnings call about the need to raise capital, which they are doing this morning with their $15B common stock offering, this is how the CFO answered: "we feel like we're in a really good place from a balance sheet perspective.

We have over $30 billion of cash.

We have a $10 billion revolver.

So, we've got $40 billion of liquidity… Obviously, the fact that revenue and profitability and EBITDA are all expanding helps a lot in terms of the cash flow that throws off to the business.

And additionally, we have… roughly, call it $10 billion of what it's called non-core assets that can still be monetized on the balance sheet… And we have seen, by the way, our customers willing to invest with us.

And we've had pre-pays from customers… that has enabled us to unlock capacity that's helped us.

That said, if we're super successful, which we're driving to, we may need to tap the capital markets to drive…some more investment." My belief of what "super-successful" means is they are close to signing up one or more major foundry customers, which is very capital intensive, and they need a lot more capacity to ramp it.

I expect more details from industry sources to come out over time given a press release is unlikely given the secrecy demanded by most customers.

I believe with Intel, there are multiple ways to win: 1) higher ratio of CPUs to GPUs in Agentic, 2) advanced packaging and 3) US national champion in foundry.

This offering today increases my conviction they are on the path to being "super successful."