HSBC Lowers Intel (INTC) Price Target, Keeps Hold Rating

Intel Corporation (NASDAQ:INTC) is one of the 10 Best Tech Stocks Under $50 To Invest In. On July 25, HSBC reduced its price target for Intel Corporation (NASDAQ:INTC) from $22.00 to $21.25 and maintained a “Hold” rating.

The company reported Q2 2025 revenue of $12.9 billion, beating both HSBC’s forecast and consensus estimates. However, Intel Corporation (NASDAQ:INTC) recognized $800 million of non-cash impairment and accelerated depreciation charges and $200 million of one-time period costs during the quarter. These expenses caused the company’s gross margin to drop to 29.7%, significantly below the guidance of 36.5%.

HSBC Lowers Intel (INTC) Price Target, Keeps Hold Rating

A technician soldering components for a semiconductor board.

For Q3 2025, Intel Corporation (NASDAQ:INTC) expects revenue between $12.6 and $13.6 billion, representing quarter-over-quarter growth of 2%. The company projects a gross margin of 36%, which is below consensus estimates of 37.2%. This reflects ongoing pressure on margins. Additionally, the EPS guidance by Intel Corporation (NASDAQ:INTC) of $0.00 for Q3 2025 fell short of HSBC’s projection and consensus expectations of $0.05.

HSBC cut its estimates for Intel Corporation’s (NASDAQ:INTC) earnings per share in 2025 and 2026 to $0.10 and $0.56, down from previous predictions of $0.31 and $0.93, respectively.

HSBC also pointed out that Intel Corporation (NASDAQ:INTC) is being cautious with its foundry business. Instead of focusing on the 18A node, the company is working on its next-generation 14A node for external customers. Intel Corporation (NASDAQ:INTC) indicated that its capital spending in 2026 would be lower than the 2025 net capex of $8 billion to $11 billion, reflecting a more conservative investment strategy.

Intel Corporation (NASDAQ:INTC) is an American technology company that specializes in the manufacturing of central processing units (CPUs) and semiconductors.

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Disclosure: None. This article is originally published at Insider Monkey.