- Intel confirms plans to keep its NEX business in-house
- The company was looking for buyers in July 2025.
- NEX plays a key role in artificial intelligence, data center and edge strategy.
Intel has reportedly changed its mind about selling its networking and communications division (NEX) after previously exploring strategic options such as a sale or spin-off.
The American chipmaker decided that the greater long-term benefit would come from selling products and platforms rather than selling its business.
By keeping the NEX division in-house, Intel will have tighter control over chips, software and systems, which will ultimately benefit its offerings in artificial intelligence, data centers and edge devices.
Intel still wants to keep its NEX business
Earlier in July we reported that Intel was seeking buyers for its NEX business as part of its plans to improve profitability. “We plan to create key elements of our networking and communications business as a separate company,” an Intel spokesman said at the time.
In fiscal 2024, NEX accounted for about 11% of Intel's total revenue (or $5.8 billion of the $53.1 billion it generated over the 12-month period).
However, despite slow growth, this division is now seen as a key asset in the company's portfolio.
“After a thorough review of NEX's strategic options, including a potential standalone route, we have determined that this business is best positioned for success within Intel,” the company said (via Reuters).
“Keeping NEX in-house enables tighter integration between silicon, software and systems, strengthening customer offerings in artificial intelligence, data center and edge.”
However, Intel's financial position has improved dramatically in recent months. He sold about 10% of the company's shares for about $8.9 billion from the US government. Investments of $2 billion and $5 billion from SoftBank and Nvidia were also crucial.
Intel shares are up 102% this year.
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