Stock offering size expanded to $20 billion, with Intel institutional demand reportedly exceeding $100 billion
2026-08-14 02:06
Odaily News: Citrini analyst jukan posted on X platform, stating that GF Securities Overseas Electronics Newsletter reiterated its Buy rating on Intel with a $136 price target, and believes this stock offering sends a positive signal. The report expects Intel's foundry business to break even in Q4 2027, with margin leverage effects fully reflected by 2028. Yield rates and external customer expansion—especially progress with Apple—are advancing steadily, and the EMIB customer base is also expanding, with customers including Google and AWS. Intel has secured support from substrate supplier Unimicron and will produce silicon capacitors internally. The report raised Intel's expected EPS for 2026 and 2027 by 3% and 1% respectively, maintaining the $136 price target after accounting for dilution effects.
Intel expanded its stock offering from the initially planned $15 billion to $20 billion, with institutional demand reportedly exceeding $100 billion. The offering price was $95, and the overallotment option has been fully exercised. CEO Lip-Bu Tan and his family subscribed approximately $12 million at the offering price, which the report believes reflects management's confidence in the company and may support capital expenditure for fiscal year 2027.
The report states that Intel reiterated its foundry business will achieve breakeven by the end of 2027; if delayed to 2028, the primary reason would be increased demand for additional investment. The report maintains its previous assessment, expecting 18A yield of approximately 80% in Q2 2026, with CWF already entering the capacity ramp-up phase. External customer collaboration continues to advance, with Apple's 14A high-volume manufacturing being particularly notable. The report raised Intel's back-end business revenue expectations for fiscal years 2027 and 2028 to $1.1 billion and $7 billion respectively, citing improved visibility into AWS Trainium3 adopting EMIB-T in 2027, as well as Google's Humufish and Triggerfish entering production expansion phases from H2 2027 to 2028. The report also expects that AWS and Microsoft ASIC products may adopt EMIB in 2028.
Intel expanded its stock offering from the initially planned $15 billion to $20 billion, with institutional demand reportedly exceeding $100 billion. The offering price was $95, and the overallotment option has been fully exercised. CEO Lip-Bu Tan and his family subscribed approximately $12 million at the offering price, which the report believes reflects management's confidence in the company and may support capital expenditure for fiscal year 2027.
The report states that Intel reiterated its foundry business will achieve breakeven by the end of 2027; if delayed to 2028, the primary reason would be increased demand for additional investment. The report maintains its previous assessment, expecting 18A yield of approximately 80% in Q2 2026, with CWF already entering the capacity ramp-up phase. External customer collaboration continues to advance, with Apple's 14A high-volume manufacturing being particularly notable. The report raised Intel's back-end business revenue expectations for fiscal years 2027 and 2028 to $1.1 billion and $7 billion respectively, citing improved visibility into AWS Trainium3 adopting EMIB-T in 2027, as well as Google's Humufish and Triggerfish entering production expansion phases from H2 2027 to 2028. The report also expects that AWS and Microsoft ASIC products may adopt EMIB in 2028.
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