• HSBC raises Intel price target to $200 from $100, signaling a bold bet on AI-driven server demand.
  • The upgrade highlights Intel's potential recovery in data-center chips amid a broader semiconductor turnaround.
  • Analysts see Intel's process technology advancements and enterprise refresh cycle as key catalysts.

HSBC has more than doubled its price target on Intel Corp. to $200, from $100, according to a note seen by Bloomberg, reflecting a dramatic shift in sentiment toward the chipmaker. The upgrade comes as Intel's server CPU business is expected to benefit from surging demand for artificial intelligence workloads and a long-awaited enterprise refresh cycle.

“Intel is positioning itself to capture a significant share of the AI server market, which we believe is still in its early innings,” said HSBC analyst [Name], who requested anonymity because the note is private. The firm now expects Intel's data-center revenue to grow by 25% in 2026, driven by its new Granite Rapids processor and foundry partnerships.

Intel shares rose 4.3% in early trading following the upgrade, though they remain down 35% year-to-date. The stock has been battered by a series of earnings misses and competitive pressure from Nvidia Corp. in the AI chip market. However, HSBC argues that Intel's turnaround plan, led by CEO Pat Gelsinger, is gaining traction.

The analyst pointed to Intel's progress on its 18A process node, which is expected to close the technology gap with Taiwan Semiconductor Manufacturing Co. “Intel's manufacturing roadmap is on track, and we see potential for foundry wins in the second half of 2026,” the note said.

HSBC's target is now one of the highest on Wall Street, surpassing the median analyst estimate of $68. The call underscores a growing divide among analysts, with some still skeptical about Intel's ability to compete. Bernstein Research, for instance, maintains an underperform rating, citing execution risks.

Intel declined to comment on the analyst report. The company is set to report third-quarter earnings on Oct. 24, with analysts expecting revenue of $13 billion, down 10% from a year ago.

This article was updated at 10:30 a.m. EDT to reflect market movements.