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AMD's Datacenter Soars, Gaming Takes a Backseat

AMD's data center division has achieved a significant milestone, with its revenue more than doubling to reach an impressive $6.7 billion, driven prima

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Originally reported bytheverge

AMD's data center division has achieved a significant milestone, with its revenue more than doubling to reach an impressive $6.7 billion, driven primarily by the escalating demand for artificial intelligence capacity.

The latest earnings report highlights this exceptional performance, showing AMD’s data center revenue soaring past $6.7 billion year-over-year. This remarkable growth marks a substantial increase from $5.8 billion in the first quarter and an astounding 107 percent jump from the $3.2 billion reported in the corresponding period of the previous year.

In contrast, AMD's gaming revenue experienced a downturn, falling 31 percent compared to last year, settling at $779 million. This decline was largely attributed to challenges such as price increases and ongoing component shortages, which impacted sales for major gaming platforms including the Xbox Series X/S, PlayStation 5, and Valve’s Steam Deck.

Commenting on the company's overall financial health, AMD CFO Jean Hu stated, “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.” She also noted that the company's combined PC and gaming business revenue grew by six percent year-over-year, with Client revenue specifically rising 23 percent, boosted by robust sales of Ryzen processors.

Looking to the future, AMD CEO Lisa Su underscored the pivotal role of artificial intelligence: “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.”

#AI News#AMD#Datacenter#AI demand#Gaming revenue
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