Intel $6.5B bond sale drew $50B orders, signals AI comeback
Business
Intel just sold $6.5 billion in bonds and got about $50 billion in orders.
This big demand shows investors are feeling good about Intel's comeback plans and its push into artificial intelligence (AI) technology with Xeon server chips.
The cash will help Intel buy back nearly half of its Fab 34 chip plant in Ireland, which Intel had previously sold as a 49% stake in the Fab 34 joint venture.
Despite BBB, Intel bonds 7.7x oversubscribed
Even though Intel's credit rating recently dropped to BBB, the bond sale was still 7.7 times oversubscribed, almost double the usual interest for these deals.
Major banks like Citigroup and JPMorgan helped make it happen, highlighting that Wall Street still believes Intel can bounce back and ride the AI wave despite some recent setbacks.