Intel Gets Upgrade Ahead of Earnings as AI-Driven Server Demand Grows

HSBC analyst Frank Lee upgrades Intel (INTC) to Hold from Reduce and lifts the price target to $50, arguing that traditional server demand should rebound and that AI-driven demand will boost server CPUs. Lee expects FY26 server shipments to rise 15%–20% YoY, with potential margin upside on Lunar Lake, and projects Q4 revenue around $13.3B and Q1’26 around $13.2B. The stock has surged about 116% over the last year, and the consensus remains a Hold with a price target (~$44.55) below the current share price, underscoring ongoing risks in its foundry business and growth drivers.