- Intel confirms plans to keep its NEX business in-house
- The company was looking for buyers in July 2025
- NEX is key to its AI, data center, and edge strategy
Intel has reportedly changed its mind with regards to selling of its Networking and Communications (NEX) unit after previously exploring strategic options like a sale or a spin-off.
The US chipmaker has decided that greater long-term value will come from selling products and platforms – rather than divesting the business.
By keeping the NEX unit in-house, Intel will have tighter control over silicon, software, and systems – ultimately benefitting its AI, data center, and edge offerings.
Intel wants to keep its NEX business after all
Earlier in July, we reported that Intel was seeking buyers for its NEX business as part of its profitability plans. “We plan to establish key elements of our Networking and Communications business as a stand-alone company,” an Intel spokesperson said at the time.
In fiscal 2024, NEX accounted for around 11% of Intel’s entire revenue (or $5.8 billion of the $53.1 billion it made in the 12-month period).
However, despite slow growth, the unit is now being considered as a key asset in the company’s portfolio.
“After a thorough review of strategic options for NEX – including a potential standalone path – we determined the business is best positioned to succeed within Intel,” the company said (via Reuters).
“Keeping NEX in-house enables tighter integration between silicon, software and systems, strengthening customer offerings across AI, data center, and edge.”
In recent months, though, Intel’s financial position has drastically improved. It traded around 10% of the company for around $8.9 billion from the US government. $2 billion and $5 billion investments from SoftBank and Nvidia have also been crucial.
Intel shares are up 102% this year to date.
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