HSBC Doubles Intel Price Target to $200
The bank says new customer design activity and stronger AI server demand could lift Intel’s revenue trajectory.
Overview
- HSBC analyst Frank Lee doubled his price target to $200 and kept a Buy rating in a July 3 research note, pointing to rising customer engagements for Intel’s foundry and upgraded server forecasts.
- Lee expects external 'design commitments' for Intel’s foundry to begin in the second half of 2026 and cited talks or projects with Apple, Alphabet, Nvidia, Microsoft, and Amazon.
- HSBC raised its server CPU shipment growth forecasts to 25% for 2026 and 30% for 2027, saying strong AI demand for data-center processors is the primary driver.
- Intel reported stronger-than-expected Q1 results with $0.29 EPS and $13.58 billion revenue, and institutional investors have been adding positions while at least one executive trimmed holdings.
- The upgrade reverses HSBC’s April stance that excluded the foundry from valuation and contrasts with a cautious Wall Street consensus that still rates Intel mostly a Hold with an average target near $101.