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Intel Ditches Sale Talks And Reinvents Networking Business Inside Its AI Strategy

Benzinga•December 04, 2025 at 10:21 AM•Full Content
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Detected Companies & Sentiment

Intel Corporation
"strategic pivot"
8
NVIDIA Corporation
"not mentioned"
0
Taiwan Semiconductor Manufacturing Company Limited
"not mentioned"
0

Gist

Intel is abandoning plans to sell its networking unit, integrating it instead into its AI and data center strategy to strengthen its turnaround under new leadership.

LLM Summary

Intel has reversed course on selling its Network and Edge Group, opting to keep it in-house to better integrate silicon, software, and systems for AI, data center, and edge computing. This move supports CEO Pat Gelsinger’s broader turnaround strategy, bolstered by strategic partnerships and capital from SoftBank and Nvidia. Despite challenges in competing with TSMC and Samsung, Intel’s stock has surged this year.

Full Article Content

Intel Corp's (NASDAQ: INTC) latest strategic shift put a spotlight on its turnaround efforts this week as the company reversed course on plans for its networking unit and doubled down on integrating the business into its core operations.

Intel on Wednesday said it will keep its networking division in-house, reversing plans to spin it off or sell a stake after concluding the unit is more likely to succeed as part of the company.

The chipmaker said it reviewed multiple options for the Network and Edge Group (NEX), including making it a standalone business, but ultimately decided that tighter integration across Intel's silicon, software, and systems would deliver stronger offerings in artificial intelligence, data center, and edge computing.

CEO’s Turnaround Strategy

The shift reflects the evolving turnaround led by Tan, who took over in March and has been cutting jobs and offloading operations to stabilize the company.

Intel's financial position also strengthened after an unusual Trump administration–brokered deal in August that gave the U.S. government a 10% stake.

Intel then secured $2 billion from SoftBank (OTC: SFBQF) and $5 billion from Nvidia Corp (NASDAQ: NVDA), helping drive a sharp rally that more than doubled the stock this year.

Partnership with Ericsson

Ericsson previously considered investing to help keep Intel's networking business viable, given its reliance on Intel-designed chips for mobile network equipment.

The two companies deepened their partnership last year when Ericsson said future network infrastructure would run on Intel's next-generation Xeon processors.

Challenges Ahead

Intel has struggled to match the pace of Taiwan Semiconductor Manufacturing Co (NYSE: TSM) and Samsung Electronics Co Ltd (OTC: SSNLF) in recent years.

Former CEO Pat Gelsinger was forced out after his costly foundry expansion plan failed to deliver quick returns, prompting Intel to cut costs and consider selling non-core assets.

Price Action: INTC stock is down 0.65% at $43.48 premarket at last check on Thursday.

Metadata

Author:
Anusuya Lahiri
Image URL:
https://cdn.benzinga.com/files/imagecache/250x187xUP/images/story/2025/12/04/Santa-Clara--Ca--Usa---Nov-22--2023-Inte.jpeg
Tickers:
ERIC, INTC, NVDA, SFBQF, SSNLF, TSM
Updated At:
December 04, 2025 at 6:21 AM
Benzinga Channels:
News, Top Stories, Movers, Tech, Media
Benzinga Tags:
why it's moving
Teaser:
Intel Corp's latest strategic shift keeps its networking division in-house, doubling down on integrating it into core operations.
Benzinga Stocks:
ERIC (NASDAQ), INTC (NASDAQ), NVDA (NASDAQ), SFBQF (OTC), SSNLF (OTC), TSM (NYSE)
Benzinga Article ID:
49203302