• HSBC ups Intel price target to $200 from $100, maintains Buy rating.
  • Bank expects stronger server CPU shipments and rising foundry commitments.
  • Upgraded target signals growing confidence in Intel's AI-driven recovery.

Server and Foundry Strength Drive Bullish Call

HSBC has sharply increased its price target for Intel Corp. to $200 per share, doubling its previous estimate of $100, while reaffirming a Buy rating. The move reflects heightened expectations for Intel's server CPU shipments and a pickup in its foundry services business, according to a research note released Thursday morning.

"We see a clear inflection in server demand, compounded by customer commitments to Intel's foundry operations beginning in the second half of 2026," the HSBC analyst wrote. The bank now projects higher earnings visibility through 2027, bolstered by AI-related compute needs and data center expansions.

The upgrade follows a string of positive analyst revisions for the Santa Clara, California-based chipmaker, as the broader semiconductor sector benefits from surging demand for AI infrastructure and enterprise cloud upgrades. Intel shares rose 3.2% in early trading on the news, reaching $142.50.

Industry Tailwinds and Execution Risks

Intel's turnaround hinges on its ability to capitalize on AI workloads beyond its traditional CPU stronghold. The company's foundry arm, which manufactures chips for external clients, has attracted early interest from several unnamed tech firms, people familiar with the matter said. However, competition from Taiwan Semiconductor Manufacturing Co. and Samsung remains fierce.

"Intel's path to $200 isn't without obstacles," said a portfolio manager at a top-10 Intel shareholder, who asked not to be identified. "But HSBC's conviction is a positive signal that the market may be underestimating the server recovery and foundry ramp."

HSBC's previous $100 target was set in January, when Intel was grappling with inventory corrections in its data-center segment. Since then, the company has reported two consecutive quarters of server CPU revenue growth, and its foundry division has secured a preliminary agreement to produce custom chips for a leading cloud provider.

The note also highlighted improving margins as Intel's manufacturing scale increases, though capital expenditure remains a concern. Intel has pledged to keep CapEx under $25 billion for 2026, down from $28 billion in 2025.

Broader Analyst Sentiment

HSBC is among the most bullish on Intel on Wall Street. The consensus price target is currently $128, according to data compiled by Bloomberg. Rival firms, including Morgan Stanley and Goldman Sachs, have also raised their targets in recent weeks, albeit less dramatically.

"The server cycle is real, and Intel is positioned to benefit," said a semiconductor analyst at a major bank. "But the foundry story is still a multiyear bet. The next 12 months will be critical for execution."

HSBC did not immediately respond to a request for comment on the note's details.

Correction: An earlier version of this article misstated HSBC's previous target. It was $100, not $90. The error has been corrected.