AMD’s datacenter business is booming while gaming takes a backseat
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- AMD data center revenue more than doubled to $6.7 billion in the latest quarter, a 107% jump from $3.2 billion a year earlier and up from $5.8 billion in Q1.
- AMD gaming revenue fell 31% year-over-year to $779 million, with the company citing price hikes and component shortages that slowed sales of Xbox Series X/S, PS5, and Valve's Steam Deck.
- AMD posted record total revenue of $11.5 billion, up 50% year-over-year, with the data center segment representing 58% of company revenue in the quarter per CFO Jean Hu.
- AMD Client revenue (Ryzen processors) rose 23% year-over-year, and its broader PC and gaming business grew 6%, even as the console-and-handheld gaming segment slumped.
- Lisa Su, AMD's CEO, attributed the surge to AI-driven compute demand, saying the company's leadership portfolio positions it to capture 'substantial revenue and earnings growth in the years ahead.'
Why it matters: Data center now drives 58% of AMD's revenue and grew more than 2x YoY to $6.7B, making AMD a direct beneficiary of the AI infrastructure buildout alongside NVIDIA. The 31% gaming decline, however, shows AMD is now structurally leveraged to AI capex cycles rather than consumer hardware — a single-quarter console supply issue masks the bigger strategic shift: AMD's earnings are now tethered to hyperscaler spending on AI accelerators.
