AMD's AI-driven data-center sales surge while gaming earnings tumble
AMD reported a 107% year-over-year jump in data-center revenue to $6.7 billion, while its gaming segment fell 31% to $779 million.
AMD’s most recent earnings release revealed that demand for AI-related compute pushed data-center revenue up 107% from a year earlier, totaling $6.7 billion and representing more than half of the company’s $11.5 billion record sales. The surge helped lift overall revenue 50% year-over-year, while the gaming division contracted 31% to $779 million amid higher prices and shortages affecting Xbox Series X/S, PlayStation 5 and the Steam Deck.
Client-PC revenue grew six percent, driven by a 23% rise in Ryzen processor sales. CFO Jean Hu highlighted the data-center segment’s pivotal role, and CEO Lisa Su said AI is expanding compute demand across AMD’s portfolio, positioning the firm for continued earnings growth. The report underscores a strategic shift toward AI-centric markets as traditional gaming sales wane.
Why it matters
AMD’s earnings show AI demand reshaping chip makers’ revenue mix, signaling broader industry trends.
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