Intel Eyes Exit From Networking And Edge Business To Refocus On PC, Data Center Dominance: Report

Intel Corp INTC explored selling its network and edge businesses to focus on its core competencies, namely PC and data center chips.

Intel CEO Lip-Bu Tan voiced his plans to expand and build on its core competencies during Intel’s 40th-year celebration in Computex, Taipei, Reuters reported on Tuesday. He highlighted the firm’s share of ~68% of the PC chip market and 55% of that for data centers.

Also Read: Intel’s Next-Gen AI Tech Steals The Show At Computex 2025

Intel weighed the timing and mode of divestment of its NEX group, which makes chips for telecom equipment, Reuters reported, citing unnamed sources familiar with the matter.

Intel also explored selling its networking business due to the dominance of rivals like Broadcom Inc. AVGO, Reuters reported, citing unnamed sources familiar with the matter.

Intel stock has plunged over 33% in the last 12 months as it grappled with losses in its share in the data center and PC areas, which once served as its moat. It failed to tap the AI shift, akin to rivals like Taiwan Semiconductor Manufacturing Co TSM.

Intel fired its chief Pat Gelsinger in 2024 after his turnaround plan to take on Taiwan Semiconductor failed to impress the board. Intel struggled as rivals Advanced Micro Devices, Inc AMD and Nvidia Corp NVDA captured market share in data centers, AI, and GPUs.

Recently Intel CFO David Zinsner said Intel foundry is on track to break even in 2027 and would require external customers to generate low to mid-single digit billions in revenue to accomplish that.

In April, Intel sold a majority stake in its Altera unit to SilverLake for $4.46 billion.

Before the SilverLake sale, the company had been preparing to spin out Altera through a public offering under former CEO Pat Gelsinger, akin to Mobileye Global Inc MBLY, in 2022.

Price Actions: INTC stock is down 0.30% at $21.32 at last check Tuesday.

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