AMD’s data center segment has experienced extraordinary growth, with revenue reaching $6.7 billion in its latest quarterly report. This represents a substantial increase from $5.8 billion in the previous quarter and marks a 107 percent surge compared to the same period last year. The expansion is primarily attributed to surging demand for artificial intelligence infrastructure. Chief Executive Lisa Su indicated during the company’s earnings call that the data center division is expected to continue this momentum, with projections for revenue to more than double again throughout 2027.
In contrast, AMD’s gaming business has struggled significantly during the same period. Gaming revenue declined 31 percent year-over-year, falling to $779 million as elevated component costs and supply chain challenges undermined console sales for major platforms including Xbox Series X/S, PlayStation 5, and Steam Deck. Rising manufacturing expenses pushed graphics card prices higher, ultimately dampening consumer purchasing activity across the gaming sector.
Overall company performance remained resilient despite gaming headwinds, with total revenue hitting a record $11.5 billion, up 50 percent year-over-year. The data center segment now accounts for 58 percent of company revenue. Meanwhile, AMD’s client processors gained traction, with Ryzen sales driving a 23 percent increase in client segment revenue, partially offsetting gaming sector weakness.
Originally reported by Theverge →
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