Intel (INTC) Advanced Packaging Could Support AI Data Center Growth, Mizuho Says

Intel (NASDAQ:INTC) is one of the 15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More.

Intel Corporation may benefit from tailwinds coming from advanced packaging technologies, which has led one firm to raise estimates and its price target for the stock. On June 22, Mizuho analyst Siti Panigrahi raised the price target on the stock to $135 from $128 and reiterated a Neutral rating.

While the firm remains neutral on Intel, it is cautiously positive on the stock considering potential benefits from its advanced chip-packaging technologies. Advanced packaging allows for improved performances, enabling more computing power and supporting the needs and growing demands of AI data centers.

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Mizuho anticipates Intel’s EMIB-T technology and TSMC’s CoWoS-L 2.5D approaches to gain traction. Intel’s, however, could be a lower cost option but will need to improve manufacturing yields to around 99% to allow the technology to become competitive and widely adoptive.

We believe driving 8.0x/5.5x reticle sizes, enabling larger package sizes/dense chip connections while we estimate EMIB-T to be cheaper but with need improving yields to 99%, 2) we note glass substrate emerging, driving better thermal conductivity/denser wiring for closer connections, 3) 3D approaches ahead with Foveros/SoIC pushing further vertical integration.

Overall, the firm sees Intel gaining benefits from the shift to more advanced packaging technologies. This is particularly true as AI computing requires larger and more tightly connected chip systems.

Intel Corporation is a multinational semiconductor manufacturer that designs, develops, manufactures, markets, sells, and services computing and related end products and services.

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