Intel is reportedly contemplating the sale of its Networking and Edge (NEX) division to better concentrate on its core CPU business. The NEX division, expected to generate $5.8 billion in revenue in 2024, accounts for 11% of Intel's total sales. Despite a 20% growth in the fourth quarter and a 16% operating profit margin last year, Intel is strategically evaluating this segment as it shifts focus to maintaining its leadership in PC and data center processors.
Intel's CPU market share has decreased from 80% in 2015 to 60% in 2024, with AMD (AMD) gaining ground. Currently, Intel holds 68% of the PC processor market and 55% of the data center processor market. Broadcom (AVGO) presents significant competitive pressure with its dominance in network chips, particularly the Tomahawk series for AI data centers and telecom-grade Jericho chips. Broadcom's network products contribute to 30% of its $12.3 billion AI-related revenue, offering a technological advantage that is challenging Intel's position in the market.
