Oct. 8 at 2:10 PM
Intel shares have surged more than 50% since August, driven by deals with Nvidia, SoftBank, and the U.S. government. Despite this rally, HSBC downgraded Intel to Reduce from Hold, raising the price target to
$24 from
$21.25, citing an “unsustainable” surge. Analysts have an average price target of
$26.70, implying a 28% downside, with 76% maintaining a Hold rating.
The stock has climbed 85% this year, including a 57% gain since SoftBank’s
$2 billion investment. Nvidia also committed
$5 billion to co-develop custom data centers and PC products, while the U.S. government purchased a 10% stake for
$8.9 billion. HSBC’s Frank Lee emphasized that Intel’s execution at its fabrication plants and a potential technology-sharing deal with TSMC remain crucial for a sustainable turnaround, though the latter appears unlikely.
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