"HSBC's Frank Lee argues that Intel has 'game-changing server CPU potential' starting in Q2. The firm sees server CPU shipment growth and price hikes as the engine behind significant upside earnings potential."
"According to HSBC, this momentum is 'not priced into the stock.' The firm believes server CPU upside will drive earnings growth even as foundry uncertainty lingers."
"Intel's Data Center and AI segment grew 9% year over year in Q4 2025, reaching $4.74 billion and standing as the company's strongest segment."
"CEO Lip-Bu Tan noted in January: 'Our conviction in the essential role of CPUs in the AI era continues to grow.'"
HSBC upgraded Intel's stock from Hold to Buy, increasing the price target from $50 to $95. This upgrade reflects a shift in conviction, particularly regarding Intel's server CPU momentum. The firm believes that server CPU shipment growth and price increases will significantly enhance earnings potential, which is not yet reflected in the stock price. Despite ongoing foundry uncertainties, HSBC emphasizes that the server CPU narrative stands independently. Intel's Data Center and AI segment showed growth, and the company has secured substantial funding, indicating strong market positioning.
Read at 24/7 Wall St.
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