Intel chief executive Lip-Bu Tan has invested $12 million of his own money in Intel this week as part of the company's $19.7 billion stock offering, indicating his confidence in the company. Meanwhile, Bank of America analysts view the capital raise as an indicator of management's 'increasing foundry conviction,' suggesting growing confidence in Intel's foundry prospects.
"The capital raise […] is still a good leading indicator of management's increasing Foundry conviction (vs. defensive balance-sheet action)," reads an excerpt from BofA's note to clients published by John Intel. "We flag the capital raise also aligns with the recent step-up in capex (for internal customer) and ongoing 14A progress, with further capex increase expected on potential incremental external customer wins (18A-P, 14A, advanced packaging EMIB-T)."
