HSBC resets Intel price target for the rest of 2026

Intel conscionable delivered 1 of the astir astonishing net beats successful the semiconductor assemblage this year. Revenue came successful astatine $13.58 billion, good supra the $12.32 cardinal analysts had expected. EPS deed $0.29, beating the statement estimation of $0.01 by $0.28, according to Intel's Q1 property release.

Still, not everyone connected Wall Street is convinced the banal deserves to beryllium wherever it is. The spread betwixt the analysts who spot a genuine turnaround and those who stay skeptical is wide, and it's getting wider.

HSBC made the boldest telephone connected Intel. The slope upgraded the banal to bargain from clasp and raised its terms people to $95 from $50, astir doubling it successful a azygous move, according to GuruFocus.

Analyst Frank Lee said the upgrade was driven by rising request for server processors, which helium present sees arsenic much important to Intel's near-term outlook than its foundry ambitions.

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He expects Intel to vessel 20% much server CPUs successful some 2026 and 2027, with mean selling prices besides rising 20% successful 2026 and different 10% successful 2027 successful a choky proviso environment, GuruFocus noted.

HSBC's Q2 gross estimation for Intel stands astatine $14.2 billion, astir 9% supra Wall Street consensus, GuruFocus added. The $95 people is based connected a 2027 net model and excludes Intel Foundry from the halfway valuation. That signals the slope is making its lawsuit connected Intel's established spot business, not betting connected each portion of the company's semipermanent strategy astatine once.

For context, Intel besides reported beardown Q2 guidance of $13.8 cardinal to $14.8 cardinal successful gross with EPS guidance of $0.20, good supra the statement of $0.06, according to Intel's Q1 property release.

The excitement astir Intel is not conscionable astir 1 quarter. It is astir what is happening structurally successful the server CPU market, and wherefore that matters for a institution that has been warring to reclaim credibility for years.

As agentic AI workloads grow, the compute premix is shifting. The GPU-to-CPU ratio that defined the pretraining epoch is giving mode to thing person to parity arsenic real-time cause workloads tally much heavy connected CPUs. Intel is straight successful the way of that shift, and the Q1 results confirmed the request is already showing up successful orders and pricing.

Related: Bank of America resets Intel banal terms people aft earnings

Morgan Stanley expert Joseph Moore raised his Intel terms people to $56 from $41 up of earnings, citing stronger server request and higher expected earnings. His squad present projects 30% year-over-year gross maturation for Intel's information halfway conception successful 2026, reaching $21.8 billion.