AMD says data center revenue more than doubled as gaming fell

In short: AMD’s latest earnings show fast growth in its data center business, while its gaming business shrank.

What's going on

AMD said its data center revenue more than doubled in the second quarter of 2026 compared to the same time last year. It reached $6.7 billion, up from $3.2 billion a year earlier, a 107 percent jump. It was also higher than the previous quarter, when AMD reported $5.8 billion.

A big reason is demand for more AI capacity. In simple terms, companies building and running AI systems need lots of powerful chips in large computer rooms called data centers (think of them like warehouses full of computers). AMD sells processors and other chips that help power those systems.

At the same time, AMD’s gaming revenue fell 31 percent compared to last year, to $779 million. The report linked the drop to higher prices and shortages of parts that slowed sales of devices like the Xbox Series X and S, the PlayStation 5, and Valve’s Steam Deck.

AMD also reported total company revenue of $11.5 billion for the quarter, up 50 percent year over year. CFO Jean Hu said the data center business made up 58 percent of AMD’s revenue in the quarter. AMD also said its “Client” revenue, which includes Ryzen PC processors, rose 23 percent.

What to watch

AMD is clearly leaning into the data center market as AI spending grows. Watch for whether gaming hardware sales recover as supply issues ease, and whether AMD can keep increasing its share of chips used for AI in data centers.

Source: The Verge AI