Intel Is Raising Billions in Equity. History Says This Is What the Stock Will Do Next.
The last time Intel raised equity capital, the stock went up sevenfold in a year.
Overview
On Monday, Intel (NASDAQ: INTC) surprised the markets by announcing a $15 billion all-stock offering. After the market closed, it was reported that the offering was so oversubscribed that Intel would upsize it to $20 billion, with the banks selling the stock gaining the option to purchase an additional $3 billion, for a total of $23 billion.
Almost exactly one year ago, Intel converted CHIPS Act grants from the U.S. government into an equity stake, and also sold new equity to outside buyers Nvidia (NASDAQ: NVDA) and Softbank (OTC: SFTBY).
Details
The result? Intel's stock rose roughly sevenfold from its lows one year ago to its highs in late June. Even after the recent pullback and equity offering, the stock has still roughly quintupled compared with the U.S. government's cost basis of $20.47 per share.
Source
Originally published at www.fool.com.
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