HSBC has reaffirmed its 'Buy' recommendation on Intel Corporation, highlighting what it describes as tangible progress in the company's foundry operations. The bank's analysts pointed to improved manufacturing execution and a clearer roadmap for Intel's advanced chip production as reasons for the upbeat assessment.
Intel, once the dominant force in global chipmaking, has been investing heavily in its foundry services to challenge industry leaders such as Taiwan Semiconductor Manufacturing Company (TSMC). HSBC's note suggests that recent operational improvements are beginning to translate into stronger customer interest and potential revenue streams, though the turnaround remains a long-term endeavour.
The news comes against a backdrop of volatile global tech markets. In London trading today, the FTSE 100 edged up 0.3% to 8,215 points, while the FTSE 250 added 0.2% to 20,540. US futures pointed to a mixed open, with the Nasdaq 100 futures flat as investors weighed chip sector prospects. Among UK-listed tech names, shares in semiconductor design firm Arm Holdings slipped 1.1% in sympathy with broader sector caution.
For UK investors, Intel's fortunes matter indirectly. Many diversified pension funds and passive trackers hold US tech stocks, including Intel, as part of their global equity allocations. A sustained recovery in Intel's foundry business could boost returns for those with exposure to the S&P 500 or Nasdaq indices, but analysts caution that execution risks remain high.
Neil Wilson, chief market analyst at Finalto, commented: 'Intel's foundry pivot is a multi-year story. HSBC's note is a vote of confidence in the management's ability to deliver, but the market will need to see concrete customer wins and margin improvements before pricing in a full recovery.' The stock has gained approximately 8% year-to-date, trailing the broader semiconductor index.