TLDR
- Intel stock traded near $47.87 as analysts upgraded the shares.
- HSBC raised Intel to Hold, citing stronger server CPU demand.
- Seaport upgraded Intel to Buy with a $65 price target.
- AI-driven workloads are reviving traditional server markets.
- Investors now look to upcoming earnings for confirmation.
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Intel Corporation (INTC) was trading at $47.87, up 1.86% during market hours, after the chipmaker received two notable analyst upgrades ahead of its fourth-quarter earnings report.
Intel Corporation, INTC
The bullish calls from HSBC and Seaport Research reflect growing confidence that Intel may be stabilizing its core businesses while benefiting from renewed demand tied to artificial intelligence workloads.
The upgrades come at a critical moment for Intel, which has spent several years navigating market share losses, execution challenges, and heavy investment needs. Analysts now see signs that key end markets, particularly servers and PCs, are showing healthier trends than previously expected.
HSBC Turns Less Bearish On Intel
HSBC analyst Frank Lee upgraded Intel to Hold from Reduce and doubled his price target to $50. Lee said server shipments could rise between 15% and 20% this year as demand for central processing units accelerates alongside new AI-driven workloads.
According to Lee, the rise of agentic AI systems capable of autonomous decision making is creating incremental demand for traditional servers. Rather than replacing CPUs outright, many AI applications still rely heavily on general-purpose compute, benefiting Intel’s core server portfolio.
Lee also pointed to increasing engagement in Intel’s foundry business. He suggested that large technology players such as Apple and Nvidia may explore limited production partnerships, a signal that Intel Foundry Services could be gaining traction after years of skepticism.
Seaport Sees Upside in PCs and Foundry
Seaport Research analyst Jay Goldberg took a more optimistic stance, upgrading Intel to Buy with a $65 price target. Goldberg cited strong PC sales signals and an improving outlook for Intel’s manufacturing strategy as key reasons for the upgrade.
The PC market has been a drag on Intel’s results since the post-pandemic slowdown, but recent indicators suggest demand may be stabilizing. AI-enabled PCs and a gradual replacement cycle appear to be supporting shipments, which could help Intel’s client computing segment recover margins.
Goldberg also highlighted progress in Intel’s foundry ambitions, an area that investors have closely watched due to its scale, capital intensity, and strategic importance.
Earnings Expectations Set a Low Bar
Consensus estimates call for Intel to report earnings of $0.08 per share on revenue of $13.38 billion for the quarter. These expectations remain modest, reflecting lingering caution around profitability and execution.
That low bar could work in Intel’s favor. Any upside surprise in margins, guidance, or foundry commentary may reinforce the recent analyst optimism and support further gains in the stock.
Stock Performance Shows Sharp Rebound
Intel shares have delivered a strong rebound over the past year. The stock is up 29.71% year to date, far outperforming the S&P 500’s 0.69% gain. One-year returns stand at 122.72%, compared with 13.37% for the benchmark.
Over three years, Intel has returned 69.87%, roughly in line with the S&P 500’s 71.14%. The five-year picture remains more challenging, with Intel up just 9.76% versus the index’s 76.50%, highlighting the long-term damage from earlier missteps.
The recent rally suggests investors are reassessing Intel’s outlook as execution stabilizes and end markets improve.
AI Workloads Reshape the Narrative
A key theme behind the upgrades is the evolving impact of AI on traditional compute markets. While GPUs dominate headlines, analysts argue that CPUs remain essential for many AI workflows, particularly inference, orchestration, and enterprise deployments.
This dynamic supports Intel’s thesis that AI does not eliminate demand for its products but reshapes it. Combined with a push to rebuild manufacturing credibility through its foundry business, Intel’s strategy appears more coherent than it did a year ago.
As earnings approach, investors will look for confirmation that these green shoots translate into sustained financial improvement. The recent upgrades suggest Wall Street is becoming more willing to give Intel the benefit of the doubt.
