AMD made over 8 times as much revenue on data centers as it did gaming last quarter
This might suggest AI is something of a snake eating its own tail—but what else is new?
In the second quarter of 2026, AMD reported an impressive $11.5 billion in revenue, marking a record-breaking quarter. Among these earnings, a significant $6.7 billion came from the data center segment, a substantial increase from the previous year. This surge in data center revenue, doubling AMD's previous year's performance, marks a trend rather than a surprise.
Notably, AMD's gaming segment experienced a sharp decline, with revenue dropping by 31% compared to the previous year. This downturn is primarily attributed to the aging consoles such as the PS5, along with the rising prices of the Xbox consoles. These factors have led to fewer sales of AMD's custom SoCs in these consoles, consequently reducing their revenue from gaming.
On a more positive note, AMD has been focusing more on the client business, which brought in $3.1 billion, a 23% increase from the previous quarter. This growth is primarily driven by a 29% increase in unit shipments of client processors, although this is somewhat offset by a 3% decrease in the average selling price of these processors.
The decline in AMD's gaming segment is not surprising considering the ongoing memory supply crisis, which has driven up the prices of RAM and SSDs. This has led to reduced demand for high-end gaming hardware, affecting the sales of AMD's higher-end processors and graphics cards for gaming.
Despite this dip, AMD has managed to surpass Wall Street's estimate of $11.25 billion in revenue for the quarter. This highlights AMD's ability to diversify its business beyond gaming and its strong growth trajectory, especially propelled by the AI infrastructure build-up.
Written by urgent.news from PC Gamer's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.