- Intel confirms plans to keep 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 about selling its Networks and Communications (NEX) unit after exploring strategic options such as a sale or spinoff.
The US chipmaker decided that the greatest long-term value would come from selling products and platforms rather than spinning off the business.
By keeping the NEX unit in-house, Intel will have tighter control over silicon, software and systems, ultimately benefiting its AI, data center and edge offerings.
Intel ultimately wants to keep its NEX business
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 standalone company,” an Intel spokesperson said at the time.
In FY 2024, NEX accounted for approximately 11% of Intel’s total revenue (or $5.8 billion of the $53.1 billion made in a 12-month period).
However, despite slow growth, the unit is now seen as a key asset in the company’s portfolio.
“After a thorough review of strategic options for NEX – including a potential standalone path – we have determined that the company is best positioned to succeed within Intel,” the company said (via PK Press Club).
“Keeping NEX in-house enables tighter integration between silicon, software and systems, strengthening customer offerings in AI, data center and edge. »
However, in recent months, Intel’s financial situation has improved significantly. She sold about 10% of the company for about $8.9 billion from the U.S. government. Investments of $2 billion and $5 billion from SoftBank and Nvidia were also crucial.
Intel shares are up 102% this year to date.
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