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Intel (INTC) Plans to Separate Networking and Communications Unit Into Stand-alone Company, Highlights Reuters

By Bob Karr | August 03, 2025, 11:59 PM

Intel Corporation (NASDAQ:INTC) is one of the Best Semiconductor Stocks to Buy Under $20. On July 25, Reuters reported that the company plans to separate its networking and communications unit into a stand-alone company and has initiated the process of identifying investors, with the new CEO focusing on streamlining its operations. The Chief Executive’s plan emphasises shedding non-core assets and decreasing expenses by scaling back significant investments and reducing the workforce numbers. Elsewhere, Bloomberg reported that Ericsson AB is in talks to invest millions of dollars in Intel Corporation (NASDAQ:INTC)’s networking infrastructure business.

Intel (INTC) Plans to Separate Networking and Communications Unit Into Stand-alone Company, Highlights Reuters
A technician soldering components for a semiconductor board.

This investment will result in Ericsson being a minority stakeholder in the newly spun-off networking and edge business, known as NEX, which has supplied chips to Ericsson for the radio access network hardware, reported Bloomberg. Intel Corporation (NASDAQ:INTC) is focused on strengthening its core product portfolio and the AI roadmap. Overall, the company sees opportunities to enhance its competitive position and improve profitability.

Intel Corporation (NASDAQ:INTC) has been making progress to simplify business, improve efficiency, and enhance execution. Such efforts are focused on reducing expenses, strengthening the balance sheet, optimizing the global footprint, along with concentrating resources on very important growth areas. Intel Corporation (NASDAQ:INTC) remains on track to achieve $17 billion non-GAAP operating expense target for FY 2025.

While we acknowledge the potential of INTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.

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