HSBC Upgrades Intel (INTC) Rating, Expects 15%-20% Growth in Server Shipments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Rating Upgrade: HSBC upgraded Intel's rating from 'Reduce' to 'Hold', reflecting optimism about a recovery in its traditional server business, with FY26 server shipments expected to grow 15%-20% year-over-year, significantly exceeding street estimates of 4-6%.
- AI-Driven Demand: Analysts noted that the rise of agentic AI is expected to significantly boost server CPU demand, with projections indicating a 30%-40% year-over-year growth in market demand for 2026, providing new growth momentum for Intel.
- Improved External Engagement: While previously cautious about Intel's foundry business, analysts now acknowledge improved engagement with external customers, potentially attracting collaborations with companies like Apple, which could further enhance market confidence.
- Price Target Increase: HSBC raised Intel's price target from $26 to $50, reflecting a reassessment of its future growth potential, and despite a 19% year-to-date stock increase, they believe the market has not fully priced in its potential upside.
Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for INTC is 39.30 USD with a low forecast of 20.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 46.960
Low
20.00
Averages
39.30
High
52.00
Current: 46.960
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company operates through three segments: Intel Products, Intel Foundry, and All Other. Its Intel Products segment includes Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX). The CCG is bringing together the operating system, system architecture, hardware, and software application integration to enable PC experiences. DCAI delivers workload-optimized solutions to cloud service providers and enterprises, along with silicon devices for communications service providers, network and edge, and HPC customers. NEX helps networks and edge compute systems from fixed-function hardware to general-purpose compute, acceleration, and networking devices running cloud native software on programmable hardware. The Intel Foundry segment comprises technology development, manufacturing and foundry services. All Other segments include Altera, Mobileye, Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
