AMD’s datacenter business is booming while gaming takes a backseat
AMD reported record quarterly revenue of $11.5 billion, driven by a 107% surge in data center sales fueled by AI demand. Conversely, the company's gaming division saw a 31% decline due to market saturation and component shortages for major consoles.
Why it matters
This shift highlights the massive capital reallocation in the tech industry toward AI infrastructure at the expense of traditional consumer gaming hardware.
Driven by demand for AI capacity, AMD’s data center revenue more than doubled year-over-year in its latest earnings report, reaching $6.7 billion. That’s up from $5.8 billion in Q1, and jumping 107 percent from the $3.2 billion it reported for the same period a year ago.
At the same time, AMD’s gaming revenue fell 31 percent compared to last year, to $779 million, as price hikes and component shortages slowed sales for the Xbox Series X / S, PS5, and Valve’s Steam Deck.
[Image: https://platform.theverge.com/wp-content/uploads/sites/2/2026/08/amd-q2-2026-earnings-slides-screenshot.png?quality=90&strip=all]
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