AMD’s datacenter business is booming while gaming takes a backseat

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.

“Revenue increased 50 percent year-over-year to a record $11.5 billion, driven by continued strength in our Data Center business, which represented 58% of company revenue in the quarter,” wrote AMD CFO Jean Hu. Its overall PC and gaming business revenue grew six percent compared to last year, with Client revenue up 23 percent thanks to Ryzen processor sales.

“AI is driving a significant expansion in demand for compute across all of our markets, and our leadership portfolio and growing customer visibility position us exceptionally well to capture this expanding opportunity and deliver substantial revenue and earnings growth in the years ahead,” said AMD CEO Lisa Su.