--- title: "Intel's $20 billion stock sale at $95, first since 1971, left buyers underwater before the October 29 report" description: "Intel raised $20 billion at $95 a share in August, its first public sale since 1971, and closed October 23 at $86.96, leaving the chief executive's own purchase about $846,000 underwater. Thursday's third-quarter report must set 2027 capital spending, and no 14A customer has published an order." publisher: "The Inference" section: "Chips" published: 2026-10-25T14:06:18.757Z modified: 2026-10-25T14:06:18.757Z canonical: https://theinference.org/article/intel-s-20-billion-stock-sale-at-95-first-since-1971-left-buyers-underwater-before-the-october-29-report language: en keywords: "Intel, Foundries, Stock Offering, Earnings, Analyst Ratings" --- # Intel's $20 billion stock sale at $95, first since 1971, left buyers underwater before the October 29 report > Intel raised $20 billion at $95 a share in August, its first public sale since 1971, and closed October 23 at $86.96, leaving the chief executive's own purchase about $846,000 underwater. Thursday's third-quarter report must set 2027 capital spending, and no 14A customer has published an order. ## The chief executive bought at the offering price On August 11 [Intel](https://theinference.org/markets/companies/intel) priced its first public share sale since its 1971 listing: 210,526,315 shares at $95, raising $20 billion after an upsizing from $15 billion [1]. [Lip-Bu Tan](https://theinference.org/markets/people/lip-bu-tan), Intel's chief executive, bought 105,263 shares at that same $95 through a family trust the same day, lifting his holding to 1,314,669 shares [2]. At the October 23 close of $86.96, 8.5% under the offering price and far off the September 24 close of $127.39, his roughly $10 million purchase shows a paper loss of about $846,000 [2]. ## What the $20 billion bought in the second quarter [Second-quarter results](https://chipdispatch.com/articles/intel-s-datacenter-sales-climb-59-on-ai-host-demand-129725fe) show both halves of the trade. Data Center and AI revenue rose 59% year on year to $6.26 billion at a 39.5% operating margin, on the strongest server CPU growth in fifteen years [4]. Intel Foundry booked $5.77 billion, but outside customers paid only $293 million of it, against a $2.09 billion operating loss [4]. Intel's custom silicon line, fielded against [Broadcom](https://theinference.org/markets/companies/broadcom), [Marvell](https://theinference.org/markets/companies/marvell) and Alchip in a market it sizes at $100 billion, runs at $2 billion a year [4]. Broadcom sold $16.7 billion of AI semiconductors in a single quarter and [guides $21.7 billion for the next](https://www.thestreet.com/investing/broadcom-stock-avgo-600-price-target) [6]. It has also agreed to lend [Anthropic](https://theinference.org/markets/companies/anthropic), the AI lab whose [IPO filing disclosed the deal](https://financefeeds.com/broadcom-42-billion-anthropic-loan-avgo-351/), up to $42 billion against a $125.2 billion five-year lease of Google-designed TPU compute: an undrawn, convertible ceiling for the customer expected to be its largest next year [7]. Intel funded its factories with shareholder cash. Broadcom is offering its customer a credit line. *Chart: **Broadcom's AI silicon quarter dwarfs everything Intel Foundry sells outside** Bar chart of quarterly revenue in billions of dollars: Broadcom AI semiconductors $21.7 billion guided for fiscal Q4 and $16.7 billion reported in fiscal Q3, Intel Data Center and AI $6.26 billion in Q2, Intel Foundry external customers $0.29 billion in Q2.* *Quarterly revenue, billions of US dollars. Broadcom on a fiscal calendar, Q4 bar is company guidance; Intel quarters are calendar 2026. [4][6]* ## Bulls count wafers and a Tesla headline The bull case is physical. Output of 18A, Intel's newest high-volume process, ran 25% above target last quarter, management says demand exceeds available supply, and 14A is due for risk production in the second half of 2027 [4][5]. [An October 24 report](https://www.notateslaapp.com/news/4887/intel-to-make-mystery-chip-for-tesla-ai6-or-something-new) said [Tesla](https://theinference.org/markets/companies/tesla) has agreed to become a [14A foundry customer](https://theinference.org/article/intel-14a-courts-eight-giants-on-paper-while-tsmc-collects-cash), with no chip, volume or date named [8]. The Street has not followed the stock down: the mean target holds at $117.14 [1] after cuts to $95 at TD Cowen and $105 at Susquehanna [2][3], against a new JPMorgan target of $85, below the offering price, on a stock near 50 times forward earnings [3][2]. *Chart: **Analysts kept targets above $95 while the stock fell below the price Intel sold at** Bar chart of Intel price levels in dollars per share: JPMorgan target $85, October 23 close $86.96, August 11 offering price $95, TD Cowen target $95, Susquehanna target $105, Street mean target $117.14.* *US dollars per share. Targets published October 19 to 21; close and offering price as reported. [1][2][3]* ## The number that decides Thursday Intel reports after the close on October 29 against its own guidance: revenue of $15.8 billion to $16.8 billion, adjusted earnings of $0.38 a share and a 42% gross margin [1][2]. The figure that decides the stock is 2027 capital spending, after this year's plan was raised to $20 billion and chief financial officer [David Zinsner](https://theinference.org/markets/people/david-zinsner) called next year's outlay "up meaningfully" [1][2]. A big number with no customer revenue attached reopens the selloff that followed the July report [1]. Whether that ramp can ship at all was this page's October 21 question; Thursday settles who pays for it [1]. Owning Intel into the print is a bet on who pays for 14A [1]. ## Takeaway Intel's first public share sale since 1971 is already underwater, and Thursday's third-quarter report turns on a 2027 capital spending number that no published 14A customer order yet supports. ## Sources 1. [Yahoo Finance (TIKR), 'Intel Stock Is Up 121% This Year. Here's the Number to Watch on October 29', 24 October 2026](https://finance.yahoo.com/markets/stocks/articles/intel-stock-121-number-watch-184248016.html) 2. [CTech (Calcalist), 'Intel CEO's $10 million stock bet is down nearly $1 million ahead of earnings', 25 October 2026](https://www.calcalistech.com/ctechnews/article/riywi6a5t) 3. [GuruFocus via Yahoo Finance, 'Veteran Bank Cuts Intel Stock Price Target Ahead of Earnings', 21 October 2026](https://finance.yahoo.com/markets/stocks/articles/veteran-bank-cuts-intel-stock-181843613.html) 4. [Chip Dispatch, 'Intel Datacenter Sales Climb 59% on AI Host Demand', 12 October 2026](https://chipdispatch.com/articles/intel-s-datacenter-sales-climb-59-on-ai-host-demand-129725fe) 5. [GuruFocus via Yahoo Finance, 'Intel Stock Tumbles Ahead of Q3 Earnings', 22 October 2026](https://finance.yahoo.com/markets/stocks/articles/intel-stock-tumbles-ahead-q3-161912152.html) 6. [TheStreet, 'Broadcom stock gets massive $600 call even as AI fears grow', 23 October 2026](https://www.thestreet.com/investing/broadcom-stock-avgo-600-price-target) 7. [FinanceFeeds, 'Broadcom's $42 Billion Anthropic Loan Leaves AVGO at $351', 1 October 2026](https://financefeeds.com/broadcom-42-billion-anthropic-loan-avgo-351/) 8. [Not a Tesla App, 'Intel to Make Mystery Chip for Tesla: AI6 or Something New?', 25 October 2026](https://www.notateslaapp.com/news/4887/intel-to-make-mystery-chip-for-tesla-ai6-or-something-new) --- Intel's $20 billion stock sale at $95, first since 1971, left buyers underwater before the October 29 report — The Inference. Canonical: https://theinference.org/article/intel-s-20-billion-stock-sale-at-95-first-since-1971-left-buyers-underwater-before-the-october-29-report