AMD Data Center Revenue Doubles to $6.7B as Gaming Falls 31%
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- AMD reported data center revenue of $6.7 billion, more than doubling year-over-year from $3.2 billion and rising from $5.8 billion in the prior quarter, according to the company's latest earnings report
- AMD CEO Lisa Su told analysts the company expects data center segment revenue to more than double year-over-year in 2027, citing continued AI-driven demand for compute
- AMD's gaming revenue fell 31 percent year-over-year to $779 million, with Su attributing the decline to higher industry-wide component costs that pushed graphics card prices up and weighed on demand
- AMD posted overall quarterly revenue of $11.5 billion, up 50 percent year-over-year, with the data center segment accounting for 58 percent of total company revenue, per CFO Jean Hu
- AMD's client business grew 23 percent year-over-year on Ryzen processor sales, while the broader PC and gaming segment grew 6 percent year-over-year overall
- Su framed AI as driving 'a significant expansion in demand for compute across all of our markets,' positioning AMD's portfolio to capture growing customer visibility for the coming years
Why it matters: Data center now accounts for 58 percent of AMD's revenue at $6.7 billion, making AMD's earnings a direct read on AI infrastructure spending. The 31 percent gaming decline shows how component costs and pricing pressure are squeezing consumer hardware demand, while the $11.5 billion record quarter underscores AMD's successful pivot toward enterprise and AI customers.
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