Intel Corp. (INTC, Financials) was back in focus after HSBC made a much bigger call on the stock. The firm doubled its price target to $200 from $100 and kept its Buy rating, saying Intel's server chip business and foundry operations could deliver more value than many investors expect.
A big part of the optimism comes from servers. HSBC analyst Frank Lee said Intel is shifting more capacity toward server CPUs, which could help shipments grow faster over the next two years. The firm now expects server CPU shipments to rise 25% in 2026 and 30% in 2027.
The foundry story is also starting to look better. With advanced chipmaking capacity still tight across the industry, some customers are looking beyond Taiwan Semiconductor Manufacturing. HSBC said Intel's packaging technology, including EMIB, could make the company a stronger option for high-performance chip customers.
For investors, the upgrade is important because Intel's turnaround has needed proof, not promises. HSBC's new target suggests the firm believes the company is starting to show that proof in servers, manufacturing and advanced packaging.