AMD Posts Record Quarter as Data Center Revenue Carries Growth
Gaming revenue fell 40 percent as higher component prices from AI-related memory shortages squeezed the consumer market.
AMD's CEO Lisa Su told investors on Tuesday's earnings call that the quarter was the company's largest and most profitable in its history. Revenue hit a record $13.4 billion, and AMD forecasts another record of $17 billion for the coming quarter, with its data center unit supplying $8.5 billion of the total. The chief financial officer said data center should exceed 80 percent of company revenue by 2027, while the consumer gaming segment fell 40 percent year over year to $773 million. Su attributed the consumer weakness to higher component prices driven by AI-related memory shortages, and said AMD is planning for a down year in 2027 for that market.
Why it matters
The results show AMD's revenue leaning ever more heavily on data center customers, with the company expecting that segment to exceed 80 percent of total revenue by 2027. Consumer gaming, by contrast, is weakening, and AMD's CEO said the company is planning for a down year in that market in 2027. For readers following the industry, the quarter shows how demand for AI infrastructure is reshaping AMD's business while consumer hardware pays the price of tighter memory supply.
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