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Intel Explores Sale of Network and Edge Businesses to Streamline Operations

May 21, 2025 (43 days ago)
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Intel Explores Sale of Network and Edge Businesses to Streamline Operations
Intel is considering divesting its Network and Edge (NEX) businesses to focus on core operations like PC and data center chips, a strategic move to streamline its portfolio.

Divestiture of Network and Edge Businesses

  • Intel is exploring the sale of its NEX group, which generated $5.8 billion in 2024 but saw minimal growth of just 1%2
  • The potential divestiture aligns with CEO Lip-Bu Tan's strategy to focus on core businesses, such as PC and data center chips, where Intel holds 68% and 55% market shares, respectively4

Launch of Intel Arc Pro B-Series GPUs

  • Intel has launched the Arc Pro B-Series GPUs, reinforcing its strategic focus on core business areas like PC and data center chips1

Streamlining Operations

  • Intel recently folded the NEX division into its main chip segments and sold 51% of its Altera unit to Silver Lake for $4.46 billion, signaling a broader effort to simplify its portfolio2

Challenges and Strategic Shifts

  • Analysts highlight the complexity of Intel's transformation, which may introduce short-term challenges despite long-term strategic benefits1
  • The company faces increased competition in its networking business from rivals like Broadcom4
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