Mizuho analyst Siti Panigrahi reiterated a Neutral rating and $124.00 price target on Intel (NASDAQ: INTC) following positive comments from CEO Lip Bu Tan, which they said offes a positive read-through for the EDA industry.

The analyst commented, "Recently, Intel CEO Lip Bu Tan participated a tech conference where his comments provided some insights into how Intel is approaching internal vs. third-party EDA tools and IP. We believe the comments imply Intel's focus on rationalizing the large internal EDA teams where the internal technology does not provide a clear differentiated advantage over industry standard products. Noting the progress in his business strategy, Lip Bu indicated consolidation of the central engineering group under Srini Iyengar as a significant move. We believe the move towards industry standard solutions in EDA/IP should benefit EDA vendors including SNPS and CDNS as Intel reallocates internal CAD budgets to external EDA spend. This reinforces our expert EDA call takeaways from last year, where the expert outlined Intel's impact on EDA vendor dynamics. Net-net, we view, SNPS/CDNS as solid growth compounders and attractive investment opportunities while benefiting from the AI infra build outs and maintain our positive outlook on the EDA industry."

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Shares of Intel closed at $110.80 yesterday.