AMD's data center business is booming while gaming takes a backseat
AMD's AI infrastructure bet is paying off—data center revenue doubled YoY to $6.7B as gaming slid 31%.
AMD's AI infrastructure bet is paying off—data center revenue doubled YoY to $6.7B as gaming slid 31%.
AMD's data center unit has become its undisputed growth engine, posting $6.7 billion in quarterly revenue—a 107% year-over-year surge fueled by enterprise AI buildout. Gaming, meanwhile, contracted sharply amid price pressures and component constraints weighing on console platforms. CEO Lisa Su signaled the divergence will deepen, projecting data center revenue to again double in 2027. The results cement AMD's repositioning away from consumer silicon toward infrastructure-grade AI compute. - **Watch:** Whether gaming margin erosion forces AMD to reconsider console chip contracts when next-generation negotiations open.
Watch: Console makers renegotiating chip deals as AMD's strategic priorities visibly shift toward hyperscaler AI contracts.
Driven by demand for AI capacity, AMD's data center revenue more than doubled year-over-year in its latest earnings report , reaching $6.7 billion. That's up from $5.8 billion in Q1 , and jumping 107 percent from the $3.2 billion it reported for the same period a year ago. During Tuesday's earnings call, AMD CEO Lisa Su said the company expects "data center segment revenue to more than double year-over-year in 2027," as well. At the same time, AMD's gaming revenue fell 31 percent compared to last year, to $779 million, as price hikes and component shortages slowed sales for the Xbox Series X / S, PS5, and Valve's Steam Deck. On a call after … Read the full story at The Verge.
- 01AMD's data center unit has become its undisputed growth engine, posting $6.7 billion in quarterly revenue—a 107% year-over-year surge fueled by enterprise AI buildout.
- 02Gaming, meanwhile, contracted sharply amid price pressures and component constraints weighing on console platforms.
- 03CEO Lisa Su signaled the divergence will deepen, projecting data center revenue to again double in 2027.
- 04The results cement AMD's repositioning away from consumer silicon toward infrastructure-grade AI compute.
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