Intel's stock extends its hot streak. This is the latest source of optimism.

Intel is advancing its foundry business with a reported partnership on advanced chip-packaging technology. South Korea’s SK Hynix (KR:000660) is testing Intel’s Embedded Multi-Die Interconnect Bridge (EMIB) for high-bandwidth memory integration, a move that could reduce power consumption and enhance performance. Intel’s stock rose nearly 4% on the news, extending its 90% surge over the past month as investors bet on the company’s AI-driven growth. The collaboration highlights Intel’s push into packaging, a critical area amid a global shortage. TrendForce notes a severe supply-demand mismatch for TSMC’s Chip-on-Wafer-on-Substrate-with-Silicon technology, leaving customers like Amkor Technology (AMKR) scrambling for alternatives. Intel’s EMIB technology is gaining traction, though TSMC still leads with 69.8% of global 2.5D packaging capacity, compared to Intel’s 13.7%. Intel’s CFO, David Zinsner, previously stated that the company is nearing multi-billion-dollar annual packaging deals, calling it a “really good business.” Recent reports suggest Amazon (AMZN) and Alphabet (GOOG, GOOGL) are exploring Intel’s packaging services, though neither company has confirmed involvement. SK Hynix’s shares surged over 11% following the announcement, reaching 1,880,000 won ($1,279.15). While TSMC plans to expand capacity by over 60% by 2027, easing some bottlenecks, Intel remains optimistic. Zinsner highlighted strong customer engagement for EMIB and its advanced EMIB-T process, positioning packaging as a key revenue driver. The partnership underscores Intel’s strategy to diversify beyond traditional chip manufacturing into high-demand packaging solutions.