Intel is exploring the potential sale of its Network and Edge (NEX) division as part of a strategic shift under CEO Lip-Bu Tan. The move aims to concentrate on core areas such as PC and data center chips, where Intel holds significant market shares of 68% and 55% respectively. Discussions are underway regarding the exit strategy for the NEX division, but no formal sale process has been initiated.
The decision to divest stems from the belief that the NEX unit no longer aligns with Intel's core strategic direction. The company has engaged with investment bankers to evaluate the potential sale, although no advisors have been officially appointed. Intel has been restructuring its business, having recently sold a majority stake in its Altera division to SilverLake for $4.46 billion to support its business revival strategy.
Intel's internal discussions are still in early stages, and the company may consider alternatives other than selling the NEX unit. The NEX division's 2024 revenue was reported at $5.8 billion, but its financial results are now merged with the data center and PC segments, reflecting its reduced strategic importance.
