Prandelli, on the other hand, will be looking for his side to extend their proud record of never losing to Germany when they meet in Warsaw.
Germany - who are seeking their first trophy since lifting the Euro '96 title will be hoping to end that run in what is their eighth meeting at either a World Cup or a European championship.
"There is no such thing as an invincible side," said Prandelli. "Germany has that sense of knowing what they need to do. He added that his team will have to be daring in oder to beat Löw's boys, who are on a 15-match winning streak in competitive matches.
"They are physically strong and have players who have tasted international success at club level, so they are a side with the ingredients to go all the way,” said Prandelli. "But we will study them closely and work on the few weak points they have."
Italy needed a penalty shoot-out to beat England 4-2 in Sunday's quarter-final in Kiev with the team failing to hit the net in normal play despite 68 percent ball possession and 35 shots compared to England's nine.
"We have to take risks and not defend in our penalty area," he said. "I'd prefer it if Germany scored on the counter-attack than have us defend constantly for 20 minutes."
Germany's forwards shone in Friday's 4-2 quarter-final win over Greece and Prandelli is mindful of the risk of pushing too far forward.
Manchester City's Mario Balotelli is one player the Germans have admitted they will pay close attention to after he spearheaded an Italian attack which had periods of impressive form against the Three Lions.
With only a three-day turn-around between the quarter and semi, Prandelli has injury concerns over midfielder Daniele De Rossi and right-back Ignazio Abate, while Italy's other right-back Christian Maggio is suspended.
Aside from a 1-1 draw in a friendly in February 2011, the last time the teams met in competition was the 2006 World Cup semi-final when the Italians won 2-0 after extra time as they went on to win the title.
Germany coach Joachim Löw has developed a habit for pulling surprises at this tournament highlighted by changing three of Germany's six-man attack against Greece in axing striker Mario Gomez, plus forwards Lukas Podolski and Thomas Müller.
It means competition is fierce for places in the starting line-up and Borussia Dortmund-bound Marco Reus looked sharp against the Greeks on his tournament debut before scoring Germany's fourth goal.
Löw has only concerns over pivotal midfielder Bastian Schweinsteiger who is still feeling the effects of tearing ankle ligaments in February.
The 27-year-old may have been doing himself a disservice in saying he put in a below-par performance in the win over Greece, but statistics show he made an impressive 109 passes with a completion rate of 92 percent.
Having won the so-called "Group of Death" by beating Holland, Portugal and Denmark en route to the knock-out phase, the Germans have made no secret of their desire to lift the Henri Delaunay Cup.
"We knew before the tournament that we have a strong team," said Real Madrid star Mesut Özil.
"We believe in ourselves and the goal is to return to Germany with the title. We are confident we can beat anybody and If we play as we know we can, I am convinced we will beat Italy."