Intel Says It Will Keep Networking and Communications Unit
2025-12-04 10:15
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Wedoany.com Report-Dec.4, Intel announced on Wednesday that, following a comprehensive strategic review, it has decided to retain its networking and edge computing unit, known as NEX, within the company rather than pursue a sale or separation.

The decision comes after Intel evaluated multiple options to strengthen its financial position earlier this year. During that period, the company secured significant external investments, including an $8.9 billion commitment from the U.S. government in exchange for approximately a 10% ownership stake, as well as $2 billion from SoftBank Group and $5 billion from Nvidia.

Chief Financial Officer Dave Zinsner noted during the release of third-quarter results that these investments have substantially improved Intel's cash reserves and overall liquidity.

After careful consideration of various alternatives for the NEX division, Intel concluded that maintaining full ownership of the unit offers greater long-term value.

"Keeping NEX in-house enables tighter integration between silicon, software and systems, strengthening customer offerings across AI, data center, and edge," Intel stated in its official announcement.

Earlier this year, reports indicated that Intel had been exploring the possibility of spinning out the networking and edge business as part of broader efforts under CEO Lip-Bu Tan to focus resources on core operations and streamline the company's portfolio.

The retention of NEX allows Intel to preserve a key component of its technology stack that supports advanced computing solutions in artificial intelligence, cloud infrastructure, and edge applications. By integrating hardware and software development more closely, the company aims to deliver enhanced performance and more comprehensive solutions to enterprise customers.

Intel's shares closed at $43.76 on Wednesday, reflecting a modest gain of less than 1% during regular trading hours. In after-hours trading following the announcement, the stock declined by approximately 0.3%.

The decision to keep NEX reflects confidence in the strategic importance of networking and edge technologies to Intel's future growth, particularly as demand continues to rise for integrated systems capable of handling complex AI workloads across distributed environments. This move also aligns with Intel's ongoing efforts to rebuild competitiveness in high-performance computing and maintain leadership in segments critical to next-generation data infrastructure.

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