AMD data center revenue jumps 107% to $6.7 billion as gaming slumps

AMD posted record quarterly revenue of $11.5 billion, up 50% year over year. The main driver was the data center segment, which brought in $6.7 billion (+107% YoY) and accounted for 58% of the company's total revenue for the first time. The gaming segment fell 31% to $779 million. Xbox, PS5 and Steam Deck are all under pressure from component shortages and rising prices.

AI-processed from The Verge; edited by Hamidun News
AMD data center revenue jumps 107% to $6.7 billion as gaming slumps
Source: The Verge. Collage: Hamidun News.
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Article Fact Sheet & Key Figures
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Primary sourceThe Verge ↗
Editor-in-Chief
Data center revenue, Q2 2026$6.7 billion (+107% year over year)
Same period of 2025$3.2 billion
First quarter of 2026$5.8 billion

In the second quarter of 2026, AMD set an all-time quarterly revenue record of $11.5 billion, 50% higher than in the same period of 2025. The result was driven by a twofold increase in the data center business, which now accounts for 58% of the company's total revenue amid steady demand for AI infrastructure.

How AMD's data center business grew

AMD's data center segment brought in $6.7 billion in the second quarter of 2026, up 107% from $3.2 billion in the same quarter of 2025. The quarter-over-quarter trend is also positive: in the first quarter of 2026, the segment posted $5.8 billion.

  • Data center revenue, Q2 2026: $6.7 billion (+107% year over year)
  • Same period of 2025: $3.2 billion
  • First quarter of 2026: $5.8 billion
  • Data center share of total revenue: 58%
  • AMD total revenue, Q2 2026: $11.5 billion, an all-time record
  • Revenue growth vs. Q2 2025: +50%

Cloud providers and large enterprise customers are stepping up purchases of AMD server accelerators to deploy AI systems, from training large language models to real-time inference. That demand drove the data center segment to more than double in a single year. AMD competes here with NVIDIA, and the results show the company is successfully gaining share in the fast-growing AI accelerator market.

"Revenue grew 50 percent year over year to a record $11.5 billion,

driven by strong growth in our data center business, which accounted for 58% of company revenue," according to AMD's official press release on its second-quarter 2026 results.

Notably, the data center segment has accelerated for two quarters in a row: $5.8 billion in the first quarter of 2026 and $6.7 billion in the second. This suggests that demand for AI compute is not slowing down yet.

Why the gaming segment fell

AMD's gaming division was the quarter's biggest loser: revenue fell 31% year over year to $779 million. AMD makes custom semiconductor chips for Microsoft's Xbox Series X/S and Sony's PlayStation 5 consoles, as well as for Valve's Steam Deck handheld gaming PC.

All three platforms came under pressure at the same time. Rising component prices and persistent supply chain shortages are limiting production of the finished devices, which reduces orders to AMD. Buyers are putting off upgrades until prices normalize, and retail chains are cutting inventory. Both factors hit AMD as a chip supplier to OEM partners.

What this means

AMD is rapidly turning into an AI company in 2026: more than half of its revenue now comes from data centers, while the once-central gaming segment is moving into the background. If demand for AI accelerators holds, and there are no signs of a slowdown so far, the server business's share will keep growing, and AMD's revenue mix will increasingly resemble that of a company focused primarily on the AI market.

Frequently asked questions

What makes up 58% of AMD's revenue?

The data center segment: sales of server chips and accelerators for AI compute. In the second quarter of 2026, it brought in $6.7 billion of the company's total $11.5 billion revenue, an all-time record for the company.

Why did AMD's gaming sales fall?

AMD supplies custom chips for the Xbox Series X/S, PlayStation 5 and Steam Deck. Rising component prices and supply chain shortages have limited device production. AMD's gaming revenue in Q2 2026 fell 31% to $779 million.

Story

Key Questions Answered

What makes up 58% of AMD's revenue?

The data center segment: sales of server chips and accelerators for AI compute. In the second quarter of 2026, it brought in $6.7 billion of the company's total $11.5 billion revenue, an all-time record for the company.

Why did AMD's gaming sales fall?

AMD supplies custom chips for the Xbox Series X/S, PlayStation 5 and Steam Deck. Rising component prices and supply chain shortages have limited device production. AMD's gaming revenue in Q2 2026 fell 31% to $779 million.

How AMD's data center business grew?

AMD's data center segment brought in $6.7 billion in the second quarter of 2026, up 107% from $3.2 billion in the same quarter of 2025. The quarter-over-quarter trend is also positive: in the first quarter of 2026, the segment posted $5.8 billion. Data center revenue, Q2 2026: $6.7 billion (+107% year over year) Same period of 2025: $3.2 billion First quarter of 2026: $5.8 billion Data center share of total revenue: 58% AMD total revenue, Q2 2026: $11.5 billion, an all-time record Revenue growth vs. Q2 2025: +50% Cloud providers and large enterprise customers are stepping u

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Zhemal Khamidun — CPO at Alpina Digital, product manager of AlpinaGPT. Building AI products since 2019. Hamidun News is a pet project that grew into a production aggregator with 6,000+ readers.
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