NEW YORK, January 20, 2026, 08:54 (EST) — Premarket
- Intel shares slipped as Thursday’s quarterly report looms, reflecting a broader risk-off sentiment in the markets
- HSBC upgrades Intel to Hold and boosts its price target significantly, citing strong server demand
- Options pricing points to traders expecting a larger-than-usual move after earnings
Intel (INTC) shares dropped 2.8% to $46.96 in premarket trading Tuesday, despite HSBC upgrading the chipmaker from “Reduce” to “Hold” and lifting its price target to $50 from $26. The bank highlighted stronger demand for general-purpose server CPUs linked to “agentic AI” workloads and noted increased foundry activity, though it cautioned that uncertainties persist. TipRanks
The stock jump comes just days ahead of Intel’s fourth-quarter earnings report, which is due after the U.S. market closes on Thursday. Investors will be watching management’s outlook closely—it could overshadow the actual quarterly figures. Intel’s earnings call is set for 2 p.m. PT that day.
Derivatives markets highlight a tense outlook. Options pricing points to a roughly ±7.5% swing ahead of the first expiry following the results—a broad range around current levels, showing how binary traders are bracing for the event.
Server CPUs, the workhorses powering data centers, are a key area for Intel. Strong results here are crucial—they bankroll the expensive manufacturing expansion, including Intel’s contract chipmaking arm, its foundry business.
Broader market pressure weighed on the mood. U.S. stock futures dropped sharply after President Donald Trump threatened fresh tariffs on several European nations over Greenland, boosting demand for safe-haven assets and sending the volatility index up. “We’re seeing weakness because headlines are fueling angst and uncertainty about what lies ahead,” said David Lundgren, chief market strategist at Little Harbor Advisors. Reuters
Sentiment took a hit after warnings about enterprise hardware demand and cost pressures. Morgan Stanley downgraded its view on North American IT hardware, flagging weaker demand alongside higher component prices. Their survey showed hardware budgets are set to grow just 1% in 2026.
Intel’s Thursday report will focus heavily on guidance, pricing, and margins. Investors will zero in on comments about supply constraints and whether demand remains steady in PCs and servers. There’s also keen interest in how much of Intel’s spending plans will stay consistent throughout the year.
Foundry commentary will draw fresh attention. Investors are looking for signs Intel can pull in external clients and boost yields — the portion of usable chips per wafer — without racking up excessive costs that spook the market.
Competition stays intense. Intel goes head-to-head with Advanced Micro Devices in server processors, while Taiwan Semiconductor Manufacturing Co. holds firm as the leading pure-play foundry that Intel aims to take on.
But this scenario has a flip side. Should tariff news shake corporate confidence or rising component costs push customers to delay upgrades, Intel could face earnings with investors primed to offload shares.
Intel is set to release its earnings after the market closes on January 22. Traders will be focused less on the past quarter’s numbers and more on the company’s outlook for demand and margins in 2026.
