Intel Stock (NASDAQ:INTC) Surges With New Malaysian Advanced Packaging Plant

Packaging at chip stock Intel INTC +2.72% ▲ is not simply a matter of putting processors in boxes. It is actually a much more complex operation, which requires entire plants to get up and running. Intel recently revealed it was stepping up plans to turn Malaysia into a hub for advanced packaging, and investors were quite on board. In fact, Intel shares surged up over 3.5% as a result in Wednesday afternoon’s trading.

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The Malaysian operation—part of the larger Project Pelican—is about 99% complete, reports note. In fact, Intel looks to start the plant’s operations before the end of the year. Assembly and testing capabilities will come online first, which will represent a major advance for Intel. The Malaysian plant will be able to handle full production flows, alongside prep work and die sorting.

With this, Intel has also been working to step up its EMIB packaging approach. This is actually a step ahead of competitors who are using standard silicon interposers. EMIB calls for directly embedding conductive bridges into the substrates of chips.

A Gradual Release

Meanwhile, those interested in getting new gaming laptops that pack Intel chips will want to look to a handful of key producers. The new processors are apparently set to hit Dell (DELL) systems, along with Lenovo LNVGY -1.03% ▼ and Razer systems first.

And among these three, Lenovo’s Legion 7i and Razer’s Blade 18 will be the first to land the new chips. Dell’s model will be showing up in the second or third quarter, along with several others. This throws an immediate advantage to the Legion 7i and the Blade 18, as the new Intel chips are said to offer not only better bandwidth, but also a set of game optimization tools for a better overall experience.

Is Intel a Buy, Hold or Sell?

Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on seven Buys, 22 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After an 82.67% rally in its share price over the past year, the average INTC price target of $47.97 per share implies 5.66% upside potential.

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