Intel Corp. shares fell 6.1% in morning trading on Monday, extending losses to trade near session lows of $97.10 and below the $99.31 open. The decline follows the completion of a $20 billion common stock offering, one of the largest equity raises in semiconductor industry history, which closed at $95 per share on August 12.
Analysts at UBS reduced Intel’s price target to $112 from $121 while maintaining a Neutral rating, citing concerns over near-term upside despite the company’s long-term foundry and AI ambitions. Bank of America also cut its target to $145 from $160 the prior week, estimating the share issuance will dilute earnings per share by roughly 4% to 5%.
The broader selloff in technology shares weighed on chipmakers, with the Nasdaq Composite down 1.2% on the day. Intel’s stock has rebounded from a 52-week low of $22.78 but remains under pressure from the dilution impact of the equity raise, which involved approximately 210.5 million new shares.
Nvidia’s disclosure of a roughly $30 billion stake in Intel, revealed in a regulatory filing on Monday, provided no immediate relief to the stock. Sector peers including AMD also declined amid the broader tech retreat. Bank of America noted that the scale of Intel’s equity raise signals management’s confidence in securing major foundry customers, though analysts remain cautious on valuation in the near term.
