HSBC lifts its Intel price target to $200, arguing server CPUs remain the core upside

HSBC has raised its price target on Intel to $200 and kept a Buy rating, citing what it described as a stronger outlook for the company’s server CPU business and an improved valuation case for its foundry unit. The new target, reported and attributed to HSBC analysts, is the highest on Wall Street in the bank’s coverage.

In the note summarized by, HSBC said the server CPU segment should remain the primary driver of Intel’s earnings growth in 2026 and 2027. Server CPUs are the central processing chips used in data centers and cloud systems, and they typically carry more stable demand tied to enterprise IT spending and cloud buildouts than consumer hardware.

HSBC also maintained that its focus on Intel’s turnaround has moved from a single narrative to a fuller “sum-of-the-parts” view, meaning the bank is trying to value Intel’s distinct businesses more explicitly rather than treating the company as one uniform chip maker. In that framework, the bank said the improving foundry story has become significant enough to factor into its overall valuation.

The bank’s change includes both the size of the target and the reasoning behind it. HSBC doubled its target from $100 to $200 while maintaining the Buy rating, according to the write-up. The same report indicated the analysts view the combined opportunity as offering roughly 60% upside from then-current levels.

HSBC’s confidence in the stock appears tied to a timing argument. The bank suggested that engagements related to Intel’s foundry operations, which involve manufacturing chips for external customers as well as internal use, could begin materializing in the second half of 2026. The implication for investors is that foundry customers and design wins would provide additional visibility beyond near-term processor shipments.

Intel has long been attempting to broaden its role in the chip supply chain through its foundry plans, aiming to compete with other leading manufacturers that take on outside clients. HSBC’s commentary indicates the market narrative is shifting from whether Intel can execute to how quickly outside production demand might translate into financial results, even as processor competition in the data center remains a key proving ground.

Still, the public summary does not include new Intel announcements, contract names, or quantified foundry backlog. It also does not spell out what specific products, customer programs, or chip nodes are expected to drive the second-half 2026 “materialization” HSBC refers to, leaving investors to wait for company disclosures, customer design-in announcements, or Intel’s own reporting for confirmation.

What to watch next is whether Intel’s data center CPU cadence and performance translate into sustained revenue and margin progress, and whether the company provides clearer updates on foundry customer traction and production timelines. For the stock, that means looking for evidence that HSBC’s server CPU story holds up in Intel’s results, and for concrete markers that the foundry opportunity is moving from improved sentiment to measurable business momentum.