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AMD data center revenue more than doubles to $6.7 billion as gaming slumps

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AMD data center revenue more than doubles to $6.7 billion as gaming slumps

AMD's data center revenue more than doubled year over year in its latest earnings report, reaching $6.7 billion. That is up from $5.8 billion in the prior quarter and a 107 percent jump from the $3.2 billion the segment posted in the same period a year earlier. On a Tuesday earnings call, CEO Lisa Su said she expects data center segment revenue to more than double year over year again in 2027.

Gaming told a different story. AMD's gaming revenue fell 31 percent year over year to $779 million, as price hikes and component shortages slowed sales of the Xbox Series X/S, PS5 and Valve's Steam Deck. Su told analysts that gaming graphics revenue also declined year over year, as higher industry wide component costs pushed up graphics card prices and weighed on overall demand.

Across the whole company, AMD posted a record $11.5 billion in revenue, up 50 percent year over year. CFO Jean Hu said the increase was driven by continued strength in the data center business, which made up 58 percent of company revenue in the quarter. AMD's overall PC and gaming business grew 6 percent year over year, with Client revenue up 23 percent thanks to Ryzen processor sales, offsetting the gaming decline. Su said AI is driving a significant expansion in demand for compute across all of AMD's markets, and that the company's product lineup and growing customer visibility position it to capture that opportunity and deliver substantial revenue and earnings growth in the years ahead. The Verge's report was updated on August 4th to add comments from AMD's earnings call.

Key facts

  • AMD's data center revenue reached $6.7 billion, up 107 percent year over year from $3.2 billion and up from $5.8 billion in the prior quarter.
  • Gaming revenue fell 31 percent year over year to $779 million as price hikes and component shortages hit Xbox Series X/S, PS5 and Steam Deck sales.
  • Total company revenue hit a record $11.5 billion, up 50 percent year over year, with the data center segment making up 58 percent of revenue.
  • Client revenue, driven by Ryzen processor sales, grew 23 percent year over year, lifting the combined PC and gaming business 6 percent despite the gaming decline.
  • CEO Lisa Su said she expects data center segment revenue to more than double year over year again in 2027.

Why it matters

AI demand is reshaping AMD's revenue mix. The data center segment now accounts for 58 percent of total company revenue and is growing far faster than the rest of the business, more than doubling year over year while gaming shrinks. It shows AMD capturing a growing share of the AI infrastructure buildout alongside its data center push, and CEO Lisa Su is projecting that trend to continue with another doubling in 2027.

Who it affects

AMD shareholders and analysts tracking the company's shift toward AI and data center chips; enterprise and cloud customers buying AMD's data center hardware; PC gamers and console makers, since price hikes and component shortages tied to the Xbox Series X/S, PS5 and Steam Deck sit behind the 31 percent gaming revenue drop; and Ryzen processor buyers, whose Client segment is growing 23 percent.

How to use it

Investors and industry watchers weighing AMD against Nvidia in the AI chip race can treat the 58 percent data center revenue share and the 2027 doubling guidance as the figures to track in coming quarters. Gaming hardware buyers should expect continued price pressure on graphics cards and consoles tied to the component cost increases AMD cited, rather than near term relief.

How solid is it

The figures come directly from AMD's own earnings report, with the specific commentary sourced to CEO Lisa Su and CFO Jean Hu on the company's earnings call, as reported by The Verge. The Verge updated its article on August 4th to add the call comments, and the numbers are AMD's own reported results rather than third party estimates.

Risks and caveats

Lisa Su's 2027 data center projection is a forward looking company statement, not a guarantee, and the article does not name the exact fiscal quarter or calendar date of the earnings call beyond 'Tuesday.' The causes of the 'component shortages' behind the gaming decline are not specified, and no figures are given for AMD's stock reaction or guidance outside the 2027 data center projection.

“data center segment revenue to more than double year-over-year in 2027”

— Lisa Su, AMD CEO