HSBC has raised its price target for Intel (INTC) shares to $200, effectively doubling its previous target of $100 and maintaining a Buy rating. This revision marks a new high within Wall Street analyses for the semiconductor company.
On Friday, Intel stock opened at $120.35, with a 52-week price range between $18.97 and $142.35. The average trading price over the last 50 days is currently set at $115.64.
Server CPU Shipment Estimates Increased
HSBC analyst Frank Lee has adjusted growth forecasts for server CPU shipments, acknowledging a projected 25% year-over-year increase for 2026, revised from an earlier estimate of 20%. For 2027, he anticipates a 30% growth rate. Lee believes these estimates reflect Intel's ability to capitalize on internal reallocations of foundry capacity.
His estimates for revenue related to Data Center and AI Infrastructure (DCAI) have also increased, reaching approximately $24.1 billion for 2026, surpassing the Wall Street consensus by 4%.
Potential in Foundry Business
Intel's foundry segment is gaining momentum, according to Lee. The company's EMIB (Embedded Multi-die Interconnect Bridge) technology could provide a significant advantage, especially as TSMC struggles to meet capacity needs until the latter half of 2027. As a result, businesses are seeking alternative foundry partners, positioning Intel as a viable option.
Notably, Apple and Terafab have committed to utilizing Intel's foundry services, while negotiations are ongoing with major players like Google and NVIDIA, indicating growing interest in Intel's capabilities.
Institutional Investor Activity
Institutional ownership of Intel stock stands at 64.53%. QRG Capital Management reported a 29.2% increase in its Intel holdings in the first quarter, ending the period with approximately 485,549 shares valued around $21.4 million. Norges Bank initiated its position worth over $2.2 billion during the fourth quarter of last year, while Vanguard manages over 404 million shares, estimated at nearly $14.9 billion.
Additionally, Intel exceeded earnings expectations in its Q1 2026 report, revealing earnings per share (EPS) of $0.29 against a consensus estimate of $0.01, and revenue reaching $13.58 billion, outperforming the estimated $12.32 billion, showcasing a year-over-year increase of 7.4%. Jim Cramer has highlighted Intel as a promising investment, noting CEO Lip-Bu Tan's effective turnaround strategy.
Despite these positive developments, the current consensus analyst rating for Intel remains a 'Hold', with an average price target set at $96.69, significantly below its current trading price.
