Intel has decided to put on hold its plans to either divest or sell a part of its stake in the Networking Business Unit (NEX). The company now believes that NEX has a higher chance of thriving as an internal division and that keeping it within Intel can lead to improved customer solutions in associated fields. Earlier, Intel had been in talks with Ericsson about the potential purchase of a segment of NEX's stake. However, these discussions have now come to an end.

This change in strategy aligns with the turnaround approach that CEO Lip-Bu Tan has been implementing since assuming his position in March. Since the summer season, Intel has secured significant capital injections, and its stock price has seen a twofold increase this year. Previously, Ericsson had contemplated investing in Intel to bolster its networking business, given that its hardware products are dependent on Intel chips.

In recent times, Intel has encountered challenges in the competitive market, which ultimately resulted in the dismissal of its former CEO due to ineffective strategies. Following this, the company embarked on a cost-cutting drive and started divesting non-core assets.