Key Takeaways
- CEO Lip-Bu Tan discussed Intel’s potential re-entry into memory chips, describing innovative memory architecture as “one of my pet projects”
- The chipmaker raised $20 billion through a common stock offering on August 10 at $95 per share, marking its first equity raise in over five decades
- Former SK Hynix CEO Seok-Hee Lee joined Intel as EVP of Intel Foundry in June, strengthening speculation about memory ambitions
- Intel has submitted a patent application for “cross-batch memory” (XBM) and is working with SoftBank’s SAIMEMORY on Z-Angle Memory (ZAM) development
- Shares of INTC have surged approximately 180% year-to-date; Wall Street consensus remains at “Hold” with a $107.85 target price
During an August 13 interview on the TechSurge: Deep Tech VC Podcast, Intel CEO Lip-Bu Tan teased the company’s potential re-entry into the memory semiconductor sector. Shares of INTC began trading at $104.56 on Friday, climbing roughly 3.6% during the session.
Tan characterized emerging memory architecture as “one of my pet projects,” explaining: “I used to not invest in memory because it was kind of a commodity business. But now it has become different.”
While he refrained from making any official announcement, the surrounding indicators paint an intriguing picture.
The comments align closely with Intel’s massive $20 billion equity offering that closed on August 10. Originally planned at $15 billion, the offering was expanded and executed at $95 per share covering 210.5 million shares. Demonstrating confidence, Tan invested $12 million of personal and family funds at the offering price.
The raised capital is designated for capital investments and advanced packaging initiatives—terminology that aligns perfectly with the infrastructure needed for a memory business revival.
A Strategic Executive Addition
Intel brought on Seok-Hee Lee, the former chief executive of SK Hynix, as executive vice president of Intel Foundry in June. Tan made a pointed reference to this recruitment during his podcast appearance: “So you kind of know something that I’m thinking about.”
Lee’s appointment lends substantial weight to memory speculation, although it introduces certain complexities. Reports indicate SK Hynix is negotiating to purchase Intel’s Ohio chip facility for U.S.-based memory manufacturing, creating a potentially complicated dual connection for Lee between both organizations.
Intel has submitted intellectual property documentation for cross-batch memory (XBM), an ultra-high-bandwidth solution engineered to deliver HBM4-level performance while eliminating the expensive silicon interposer required in conventional HBM configurations. The patent application was submitted on December 26, 2024 and made public on July 2, 2026.
Additionally, Intel is collaborating with SAIMEMORY, owned by SoftBank, on Z-Angle Memory (ZAM). This technology represents a nine-layer stacked DRAM configuration marketed as a more power-efficient substitute for HBM.
Understanding the Target Market
Micron projects the worldwide HBM market will expand from approximately $35 billion in 2025 to around $100 billion by 2028, representing a compound annual growth rate near 40%.
The opportunity is substantial. However, execution presents significant challenges. “There are always many concepts for new forms of memory, but it is extremely difficult for them to go through verification and commercialization and ultimately reach mass production,” noted Lee Jong-hwan, a professor of system semiconductor engineering at Sangmyung University.
Intel reported Q2 2026 revenue of $16.13 billion, representing a 25% year-over-year increase. The data center and AI division posted 59% growth. Earnings per share reached $0.42, significantly exceeding the analyst consensus estimate of $0.21.
Institutional shareholders currently control 64.53% of INTC. Major investors including Vanguard, State Street, Capital World Investors, Geode Capital and Morgan Stanley have all expanded their holdings. The average analyst price target stands at $107.85, with 32 out of 50 analysts maintaining a “Hold” recommendation.
Intel has not disclosed any commercialization schedule for XBM or ZAM technologies.
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