AMD doubles data center revenue year over year, but gaming revenue plunged by 31% — CEO Lisa Su says prices have 'weighed on' consumer demand but is 'optimistic' about client market
AMD reported record revenue in Q2 2026, including doubling its data center business year-over-year, but gaming revenue dived 31%.
In AMD's Q2 2026 financial results, overall revenue reached $11.5 billion, marking a 50% increase year-over-year and a 13% rise quarter-over-quarter. However, the gaming segment saw a significant decline, with revenue falling to $779 million, a 31% decrease compared to the previous year due to lower semi-custom revenue. CEO Lisa Su attributes this decline to both the late stage of the console lifecycle and rising component costs, which have driven up gaming graphics prices and dampened overall demand.
Despite the decline in gaming revenue, Su remains optimistic about AMD's client business, particularly in the realm of AI PCs. She highlights strong performance in the first half of the year and a 50% year-over-year growth in Ryzen PRO chip sales, driven by commercial adoption in sectors like healthcare, technology, automotive, and financial services.
AMD's data center revenue stood out as a bright spot, increasing by 107% year-over-year to $6.7 billion. The company anticipates continued growth in this sector, with Q3 revenue expected to reach approximately $13 billion, marking a 41% year-over-year increase. Additionally, AMD's embedded business also showed robust growth, up 19% year-over-year, attributed to increased demand in physical AI applications.
Written by urgent.news from Tom's Hardware's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
