Intel PTs Jump to $95 and $65 on Server CPU Upside and Foundry Gains
HSBC upgraded Intel to Buy with a $95 target, projecting 20% server CPU shipment growth in 2026–27 and ASP increases of 20% in 2026 and 10% in 2027. Stifel raised its 12-month target to $65 citing improved 18A yield and foundry turnaround under CEO Lip-Bu Tan.
1. HSBC Upgrade to Buy and $95 Target
HSBC moved Intel to a Buy rating with a street-high $95 price target, citing unpriced potential in its Data Center and AI segment. It forecasts 20% year-on-year server CPU shipment growth in both 2026 and 2027 and anticipates average selling prices rising 20% in 2026 and 10% in 2027.
2. Stifel Raises Target to $65 on Foundry Progress
Stifel lifted its 12-month target to $65 from $42 while maintaining a Hold rating, highlighting improvements in yield at Intel’s 18A process and strategic reforms in the foundry business under CEO Lip-Bu Tan. It noted the stock’s strong rally has priced in much of the turnaround, with near-term gross margins expected in the low-to-mid 30% range.
3. Server CPU Growth and Margin Outlook
Intel’s shift of Intel 3 and 7 nodes toward high-end Xeon production responds to surging demand and is positioned to drive margin expansion. Even under a conservative scenario of 10% shipment growth in 2027, analysis implies around 38% upside to the current share price based on a 26x target PE on core business earnings.