AMD's Data Center Revenue Doubles as Gaming Takes a Backseat
AMD reported record Q2 revenue of $11.5 billion, with data center sales more than doubling year-over-year to $6.7 billion, while gaming revenue fell 31% to $779 million.
AMD's latest earnings report shows a stark contrast between its data center and gaming operations. The company's data center revenue more than doubled year over year, reaching $6.7 billion in the second quarter. This marks a sequential increase from $5.8 billion in the first quarter and a 107 percent jump from the $3.2 billion reported in the same period a year ago.
Meanwhile, AMD's gaming segment experienced a notable decline. Revenue dropped 31 percent to $779 million, a fall attributed to price increases and component shortages that weakened demand for consoles and handheld devices, including Xbox Series X/S, PS5, and Valve's Steam Deck.
Overall, AMD achieved record revenue of $11.5 billion, up 50 percent from the previous year. The data center business contributed 58 percent of total revenue, according to CFO Jean Hu. The combined PC and gaming business grew six percent, with client revenue rising 23 percent thanks to strong sales of Ryzen processors.
CEO Lisa Su stated that artificial intelligence is driving a significant expansion in demand for computing across all of AMD's markets. She noted that the company's leadership portfolio and growing customer visibility position it well to capitalize on this trend and drive substantial revenue and earnings growth in the years ahead.
