U.S. chipmaker Intel said Monday it was planning to raise $15 billion through a common stock offering as – amid turnaround efforts – it seeks to meet accelerating demand for artificial intelligence computing.

Intel said the proceeds would be used for general corporate purposes, including capital expenditures and working capital.

Once a dominant force in the global chip industry, Intel is investing heavily in new facilities and advanced packaging capabilities as it seeks to challenge industry leaders such as TSMC in ​contract chip manufacturing.

The company identified physical AI, purpose-built silicon and advanced packaging as key growth opportunities as technology firms expand the infrastructure needed to support AI services.

The offering includes a 30-day option allowing underwriters to purchase up to an additional $2.25 billion in Intel shares, potentially increasing the total proceeds to $17.25 billion.

Major technology companies have sharply increased AI-related investment amid rising demand for computing power, data centers and memory chips.

"As a ​capital-intensive business that went a long way to wrecking its own balance sheet and prospects by focusing on financial engineering rather than physical engineering, courtesy of $82 billion of share buybacks in the 2010s, it makes ​perfect sense for Intel to raise money, especially after a five-fold increase in the stock ​price since last August," said Russ Mould, investment director at AJ Bell.

Still, its shares fell about 4.8% in premarket trading following the announcement.