Intel (INTC, Financial) might be ready to part ways with its networking and edge group. The company is weighing a possible sale of the unit, according to Reuters, as CEO Lip-Bu Tan looks to double down on what Intel does best — PC and data center chips, where it already holds major market share.
The networking division, known as NEX, brought in $5.8 billion in 2024, but growth was barely there — just a 1% bump from the previous year. That's raised internal questions about whether the group fits with Intel's sharper focus. No formal sale process is underway yet, but investment bankers have reportedly been consulted.
This move wouldn't be out of character. Intel recently folded NEX into its main chip segments in a Q1 2025 reshuffle and agreed to sell 51% of its Altera unit to private equity firm Silver Lake. It's clear the company is streamlining.
With Tan pushing for “harsh feedback” and renewed innovation, this could be part of a bigger pivot. Investors will be watching closely for updates when Intel posts its upcoming earnings report.
