Why This Investor Bought Intel's Post-Offering Dip

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Intel Corp. (NASDAQ: INTC) shares ticked up nearly 2% in Wednesday's premarket trading, as investors digested an upsized stock offering against a backdrop of optimism about potential foundry customer wins. Nasdaq futures rose 0.89%, while S&P 500 futures gained 0.37%.

Kilburg Sees A Buying Opportunity

Jeff Kilburg, founder of KKM Financial and an ETF portfolio manager, told CNBC on Monday that Intel's decline after announcing a $15 billion common stock offering created a buying opportunity. Kilburg argued the market reacted the wrong way. He said Intel is raising capital to meet AI demand without putting additional pressure on its balance sheet or credit rating.

He also called the offering strategic because Intel is raising funds at a much higher share price than during previous capital raises. Kilburg expects the stock to recover and said investors could eventually reward the move.

Intel on Tuesday increased the offering to $20 billion. The company also gave underwriters a 30-day option to buy up to 31.58 million additional shares. The offering is expected to close Wednesday.

Intel expects about $19.7 billion in net proceeds, assuming underwriters do not exercise the option. The company plans to use the funds for general corporate purposes, including working capital and capital expenditures. Intel expects 2026 capital spending to exceed $20 billion.

Tech investor Dan Niles said the larger raise strengthens his view that Intel may be nearing major foundry customer deals requiring additional capacity.

Intel Technical Analysis

Intel remains well above its longer-term moving averages. The stock's 200-day simple moving average is $69.18, while its 200-day exponential moving average is $76.87.

Shares are also modestly above their 20-day and 100-day simple moving averages, both near $96. That suggests buyers continue to support the intermediate trend.

However, Intel remains 9.5% below its 50-day simple moving average of $109.84. Its 20-day average is also below the 50-day average, signaling continued near-term pressure.

The $100 level could serve as an important test. Bulls will look for the stock to eventually reclaim its 50-day moving average. Bears will try to keep shares below that level.

Intel's relative strength index stands at 46.48, indicating neutral momentum. The reading suggests the stock is neither overbought nor oversold.

Intel reached overbought RSI levels in May before hitting a swing high in June. Shares then recorded a swing low and broke below support in July.

The longer-term trend remains stronger. Intel's 50-day simple moving average crossed above its 200-day average in August 2025, forming a "golden cross."

Key support: $89.50. A break below that level could increase downside pressure.

Analyst Outlook

Intel carries a Hold consensus rating with an average price forecast of $109.07. Recent analyst actions include:

Bank of America Securities: Maintained Buy with a $160 price forecast on July 28.
Baird: Maintained Neutral and raised its price forecast to $125 on July 27.
DA Davidson: Maintained Neutral and raised its price forecast to $100 on July 24.

Intel Momentum Score

Intel has a momentum score of 98.69, reflecting strong relative performance compared with the broader market. The momentum reading supports Intel's longer-term trend. However, the next technical test is whether shares can reclaim the 50-day moving average and hold above it.