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On Dec. 3, 2025, Intel Corp (NASDAQ: INTC, $37.51, Market Capitalization: $178.9 billion) stated that it would not be separating its Network and Edge Group. According to several media reports, Intel’s management has decided that the Network and Edge (NEX) business is more likely to succeed if it remains part of the Company’s core operations (For details refer to spinoffresearch.com).
Intel stated that after a thorough review of strategic options for NEX – including a potential standalone path; the management concluded that the business is best positioned to succeed within Intel. RetainingNEX in-house enables tighter integration among silicon, software, and systems, strengthening customer offerings across AI, data centers, and edge computing.
On Jul. 24, 2025, Intel had announced its plan to carve-out its Network and Edge Group (NEX) into a separate company, marking a significant restructuring initiative under the leadership of CEO Lip-Bu Tan, who has committed to refocusing Intel’s efforts on its core business areas, AI, x86 platforms, and semiconductor manufacturing. The Network and Edge Group (Carve-Out) was expected to focus on Network silicon, data center Ethernet, edge systems, and AI-optimized communications chips, all of which are positioned for growth in a cloud and 5G-enabled future. Meanwhile, Intel (RemainCo) would have concentrated on AI and core chip technologies and adapted to a rapidly changing semiconductor landscape. Moreover, Intel had planned to retain a minority stake as an anchor investor in the new Network entity, while seeking external strategic and capital partners to support the new independent company’s growth and development.
Intel Price Performance Carve-Out Details and Top 5 Shareholders
Spin-Off Research
Valuation and Recommendation
We have dropped coverage on INTC as the planned carve-out transaction has been cancelled.
Key Data
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Company Description
Intel Corp (Parent)
Founded in 1968, Intel Corp (NASDAQ: INTC) is a technology company headquartered in Santa Clara, California. The company designs, manufactures, and sells essential technologies for the cloud, smart, and connected devices used in retail, industrial, and consumer applications worldwide. It operates through the Client Computing Group (CCG), the Data Center and AI Group (DCAI) (collectively known as Intel Products), Intel Foundry, and other segments. The company offers microprocessors, chipsets, stand-alone SoCs, and multichip packages; computer systems and devices; hardware products including CPUs, graphics processing units (GPUs), accelerators, and field programmable gate arrays (FPGAs); as well as memory, storage, connectivity, Network, and other semiconductor products. It also provides silicon and software offerings, along with optimization solutions for workloads such as AI, cryptography, security, storage, and Network, leveraging various features to support diverse computing environments. The “All Other” segment functions as a catch-all for Intel’s non-core and emerging businesses, including Mobileye, Altera, the IMS business, and various startup initiatives. The company supplies products and services to original equipment manufacturers, original design manufacturers, cloud service providers, and other technology providers. In FY24, Intel reported total revenue of $53.1 billion.
Network and Edge Group (Carve-Out) – Cancelled
Network and Edge Group (NEX) focuses on delivering Network silicon for telecom systems, Ethernet products for datacenters, and edge AI capabilities. It provides and deploys intelligent edge platforms that enable developers to achieve agility and drive automation using AI for efficient operations with data integrity. Additionally, it offers hardware and software platforms, tools, and ecosystem partnerships to support digital transformation from cloud to edge. In 1Q25, the company made an organizational change to integrate the Network and Edge Group (NEX) into CCG and DCAI and adjusted Intel’s segment reporting. The unit generated approximately $5.8 billion in revenue in FY24, representing roughly 11% of Intel’s total sales, and included key products such as the Atom P7000/P5700/P5900 series, designed with integrated cybersecurity accelerators.