Intel Corp (NASDAQ:INTC, XETRA:INL) announced that it plans to retain its networking and communications unit, NEX, after evaluating strategic options for the business.
The decision comes after a period in which Intel explored selling various assets to improve its financial position. Over the summer, the company secured an $8.9 billion investment from the US government for a 10% stake, along with $2 billion from SoftBank Group and $5 billion from Nvidia Corp (NASDAQ:NVDA, XETRA:NVD).
When commenting on the company’s recent Q3 earnings report, Intel finance chief Dave Zinsner noted that these investments have significantly strengthened the company’s cash position.
"Keeping NEX in-house enables tighter integration between silicon, software and systems, strengthening customer offerings across AI, data center, and edge," the company said in a statement.
Earlier in 2025, Intel, under CEO Lip-Bu Tan, considered divesting non-core units such as NEX to bolster finances amid competition from rivals including Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM).
Talks with Ericsson over a minority stake in the unit were ended as Intel prioritized retaining the business for tighter operational integration.
Wedbush analysts noted that Intel’s decision aligns with structural trends in the industry.
“It made little sense to us that Intel planned to spin-off its networking business given a large portion of NEX were Xeon derivatives and networking is only becoming more tightly integrated with compute, particularly in the context of AI,” the analysts wrote.
They added that retaining the unit appears to be the “right decision for Intel,” though they questioned whether the company’s earlier consideration of a sale could have affected customer perceptions or future supply decisions.
Shares of Intel fell 4.4% following the update to trade at $42, still up almost 110% so far this year.