What was behind the Intel sales blowout at DCG/DPG in Q4/2019? SemiAccurate dug in to the matter and found what is behind it, and at least one other player likely involved.
The deal in question, singular, is nothing short of a massive sale. If you take the rule of thumb that CPUs are ~20% of a system’s BoM cost that leaves a lot of others that have a stake in this too. Unfortunately SemiAccurate can only find one of those names but others should be evident in a few weeks when they report their own Q4 numbers.
On a more interesting note, SemiAccurate had heard about this deal over a year ago, it was set to materialize in mid-2019 but it never came to pass. Two quarters later it happened, and happened in a more compressed time frame than was initially indicated by our sources. That is what lead to the big bang in one quarter rather than trickling in at a ‘mere’ few hundred million dollars per quarter for a year or so as we originally though would be the case.
So who was it, and what did they buy? More importantly is this a one time sale or will it happen again?
Note: The following is analysis for professional level subscribers only.
Disclosures: Charlie Demerjian and Stone Arch Networking Services, Inc. have no consulting relationships, investment relationships, or hold any investment positions with any of the companies mentioned in this report.