AMD's Data Center Business Booms While Gaming Declines

In its latest earnings report, AMD reported data center revenue of $6.7 billion, up 107 percent from the $3.2 billion in the same period last year and up from $5.8 billion in Q1. The growth is driven by demand for AI capacity. In contrast, gaming revenue fell 31 percent year-over-year to $779 million, due to price hikes and component shortages affecting sales of Xbox Series X/S, PS5, and Valve's Steam Deck. Overall revenue increased 50 percent year-over-year to a record $11.5 billion, with data center representing 58% of company revenue. The PC and gaming business revenue grew six percent, with Client revenue up 23 percent thanks to Ryzen processor sales. AMD CEO Lisa Su highlighted that AI is driving significant expansion in demand for compute across all markets, and the company's leadership portfolio and growing customer visibility position it well for future growth.