Intel shares climbed 4.60% to $105.60 on Wednesday, building on a strong morning advance, as Bank of America reaffirmed its Buy rating on the stock and the company continued to secure funding for its ambitious foundry expansion.

Intraday Trading Action

Intel shares broke above the $105 level during Wednesday's session and held above that threshold. The stock approached $107.50 intraday before pulling back toward $105.60. Earlier in the session, shares had traded near $100.95 before gaining momentum, climbing past $102.50, and continuing higher through the morning — marking a notable shift from early trading levels.

Bank of America Maintains Buy, Trims Price Target

Bank of America maintained its Buy rating on Intel as the stock advanced. However, the firm lowered its price target to $145 from $160, citing expected share dilution from the company's recent capital raise and lower valuation multiples across AI-focused semiconductor companies.

$20 Billion Offering to Fuel Foundry Ambitions

Intel plans to raise $20 billion through a public stock offering of 210.5 million shares, priced at $95 each. The offering represents a substantial new source of capital for the company, though it creates estimated dilution of 4% to 5% for existing shareholders.

The proceeds will support Intel's broader manufacturing and foundry strategy, which the company has positioned as central to its future. Intel's foundry business targets wafer manufacturing and advanced chip packaging for external customers — a model long dominated by Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics, which together control the vast majority of the global contract chipmaking market. Intel's push to compete as a third major foundry player comes as governments and corporations worldwide prioritize supply-chain diversification, accelerated by the U.S. CHIPS and Science Act, which directs tens of billions of dollars toward domestic semiconductor manufacturing. The company is also expanding production capacity in response to rising demand for advanced semiconductor manufacturing, with packaging capabilities forming a key component of its wider expansion plans.

Server Pricing Strength Signals Demand

Intel reported notably stronger pricing in its server business during the second quarter. Server average selling prices reached approximately $1,200, representing a 43% year-over-year increase. This pricing strength provides an additional positive signal alongside the company's foundry initiatives, particularly as data-center operators accelerate infrastructure buildouts tied to artificial intelligence workloads, increasing demand for high-performance processors.

Execution Remains Critical

Intel's foundry strategy requires the company to expand manufacturing capacity, improve production processes, and secure large external customers for its manufacturing operations. The company faces ongoing challenges related to manufacturing yields and new process node ramps as it scales capacity — areas where TSMC has maintained a multi-year lead in process technology. Intel also contends with competition in advanced packaging as it builds out broader foundry capabilities. Securing marquee external foundry customers will be a key milestone for validating the strategy, as investors look for evidence that Intel can attract orders beyond its own products.

Overall, Wednesday's stock advance coincided with new funding momentum, stronger server pricing, and continued investment in foundry operations, with investors closely watching execution and customer acquisition.