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 raises $20 billion as AI spending accelerates
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.
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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 earnings show AI demand accelerating
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.
“AI is driving unprecedented demand for compute,” Tan said following the results, “As we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise.”
Intel expects third-quarter revenue of $15.8 billion to $16.8 billion and adjusted earnings of 38 cents a share.
The foundry operation remains a major challenge, however. Intel Foundry posted an operating loss of about $2.1 billion in the second quarter, despite improving yields and factory utilization.
Veteran trader sees bullish setup for Intel stock
Stephen Guilfoyle, a veteran analyst with more than 30 years of trading experience, is watching Intel’s technical setup after the stock’s summer pullback.
Guilfoyle is the founder and President of Sarge986 LLC, a family-run trading operation.
Intel formed what Guilfoyle described as a bearish “rising wedge” through the spring, with the shares eventually peaking on June 30 before falling below both their 21-day exponential moving average and 50-day simple moving average, according to a research note on TheStreet Pro.
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But the chart has changed.
Guilfoyle now sees a potential inverse head-and-shoulders pattern, a formation that can signal a bullish reversal, with a pivot around $103.
“The inverse head-and-shoulders is just about complete,” Guilfoyle wrote, although he said Intel still needs to reclaim its 50-day moving average to bring professional traders more decisively back into the stock.
Momentum indicators are also improving.
Intel’s relative strength indicator has recovered toward neutral territory, while its moving average convergence divergence, or MACD, has turned more constructive. The 12-day exponential moving average has crossed back above the 26-day EMA, another technical signal Guilfoyle views as bullish.
His target price is $128, with $103 serving as the initial pivot.
Guilfoyle said he purchased small long position last week, and would consider adding to the position on weakness toward Intel’s 200-day moving average, while a break below that level would be his signal to exit.
Bank of America remains bullish on Intel stock
Bank of America analyst Vivek Arya estimates the $20 billion stock sale will result in roughly 4% to 5% earnings-per-share dilution because of the higher share count.
Still, Arya views the capital raise as a net positive, arguing that the size of the offering could be a sign of management’s increasing confidence in Intel’s foundry ambitions.
Arya maintained his Buy rating on Intel while lowering his price target to $145 from $160 to account for the dilution and lower valuation multiples across AI-compute stocks.
Intel closed at $96.69 a share on August 18.
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