Wall Street resets Intel price target for rest of year

This article first appeared on GuruFocus.

Intel Corporation (NASDAQ:INTC) was lifted to Buy from Hold by HSBC on Tuesday, with the broker saying rising demand for server processors looks more important to the chipmaker’s near-term outlook than its foundry ambitions.

Intel has been shifting more of its own manufacturing capacity, including lines using Intel 3 and Intel 7, away from client chips and toward server CPUs, analyst Frank Lee said. Intel may be able to ship 20% more server CPUs in 2026 and again in 2027, while pricing could also improve in a tight supply backdrop.

HSBC raised its price target on Intel to $95 from $50 and said the server CPU shortage may extend into 2027. Intel could also benefit from higher average selling prices, which HSBC expects to rise 20% in 2026 and another 10% in 2027.

Intel’s server business may start to show more upside in the second quarter, when HSBC sees revenue of $14.2 billion, about 9% above Wall Street estimates. Intel’s gross margin could also get a lift if the company follows through on planned price increases.