AMD’s data center business is booming while gaming takes a backseat
TL;DR
Driven by demand for AI capacity, AMD more than doubled its data center revenue year over year to 6.7 billion dollars, up from 5.8 billion in the first quarter and 3.2 billion a year ago. CEO Lisa Su expects data center revenue to more than double again in 2027. At the same time, gaming revenue fell 31 percent to 779 million dollars. Price increases and component shortages are slowing sales of the Xbox Series X/S, PS5 and Steam Deck.
Nauti's Take
Good news for AI teams: a second serious supplier next to Nvidia improves the chance of affordable compute. The catch shows up in gaming, where price jumps and component shortages prove how strongly the AI boom crowds out other products.
Anyone planning hardware should put AMD on the shortlist and budget for consumer prices that keep climbing.
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