Intel has decided to retain its Networking and Communications business following a review of strategic options that included the possibility of a sale or a spin off. The company stated that greater long term value would come from continued ownership of the unit and the ability to integrate its products with broader platform development. This decision marks a shift from earlier reports in which Intel had been evaluating offers for the group as part of its profitability plan.
According to Intel, keeping the NEX unit within the company allows closer coordination between silicon, software and systems. This integration supports the expansion of Intel’s offerings in artificial intelligence, data center products and edge computing. The company previously indicated that restructuring or separating the unit could help streamline operations, but recent analysis has led to a different conclusion.
Intel noted that NEX contributed approximately 11 percent of its fiscal year 2024 revenue. This amounted to 5.8 billion dollars out of the company’s 53.1 billion dollar total for the period. Although the unit has experienced slow growth, Intel now views it as a key component of its product portfolio. The company said that tighter internal alignment would enhance the value of technologies delivered to customers across several markets.
Intel’s financial position has strengthened in recent months. The company received 8.9 billion dollars in government support through a transaction involving roughly 10 percent of the company. SoftBank and Nvidia also invested 2 billion and 5 billion dollars respectively. Intel’s share price has risen 102 percent so far this year, improving the environment for long term strategic decisions.
The company released a statement confirming that it had completed a full evaluation of potential paths for the NEX business. Intel said that while a standalone future was considered, it believes the business will perform more effectively within the existing corporate structure. Maintaining control of the NEX division is expected to support joint development across hardware platforms and associated software stacks.
