Intel explores sale of networking and edge unit

Intel is reportedly exploring the sale of its networking and edge computing division, formerly known as the Network and Edge Group (NEX), as part of CEO Lip-Bu Tan’s strategy to streamline operations and concentrate on the company’s core strengths in PC and data center chips.

The NEX unit, which generated $5.8 billion in revenue in 2024, was recently integrated into Intel’s data center and PC groups, ceasing separate financial reporting. Sources indicate that Intel has engaged with third parties interested in a potential deal, though no formal sale process has been initiated.

This move aligns with Intel’s broader efforts to divest non-core assets. In April, the company sold a 51% stake in its Altera programmable chip business to private equity firm Silver Lake for $4.46 billion, valuing Altera at $8.75 billion. The sale is intended to provide Intel with needed cash as it navigates financial strain from prior heavy investments in contract manufacturing.

Intel’s strategic shift comes amid increasing competition in the semiconductor industry, particularly in AI and CPU markets dominated by companies like Nvidia and AMD. By focusing on its core competencies, Intel aims to regain its footing and drive future growth.