AMD just reported its Q2 2026 financial results, with the headline number being a record $11.5 billion in gross revenue. That is up 50% year-over-year, and is mainly driven by excellent performance in its Data Center business.
AMD’s Data Center revenue was recorded at $6.7 billion, which is a staggering 107% higher year-over-year. That means that AMD generated more than double the revenue from its data center business compared to the same time last year.
That is not entirely surprising, given the unprecedented AI boom and all the GPU and CPU demand that has risen with it. AMD has been reporting excellent sales of its EPYC processors and Instinct data center GPUs for a while now, and will probably continue to do so into 2027. AMD CEO Dr. Lisa Su also attributed the company’s strong earnings to the server and enterprise segment.
“We delivered an excellent quarter, with record revenue and profitability as Data Center revenue more than doubled year-over-year. We enter the second half with strong momentum as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp. More broadly, AI is driving a significant expansion in demand for compute across all of our markets.”
AMD’s data center revenue shooting to the moon doesn’t come as a major surprise to anyone who has been watching the industry closely. Intel and NVIDIA have also reported similar or better numbers in this segment recently. However, what’s perhaps more important is what AMD tried sweeping under the rug in this earnings call.
While AMD spent paragraph after paragraph talking about their fantastic data center and server performance, they dedicated one short line to their gaming business, which is what most regular consumers associate them with the most. Of course, that’s not surprising, given that gaming business revenue was $779 million, which is down a staggering 31% year-over-year.
AMD also did not explain why the revenue was down so much, but pointed to “lower semi-custom revenue” as the reason. The semi-custom branch of the gaming business mainly includes the APUs, CPUs, and GPUs that AMD makes for the PlayStation 5, Xbox Series X|S, as well as the Steam Deck and Steam Machine, among a few others. Presumably, lower console sales and dwindling Steam Deck sales were major reasons behind AMD’s lower gaming revenue.
That trend lines up with what we have recently reported in relation to console sales. Both Sony and Microsoft have declared lower console sales over the past few months, largely due to multiple price hikes that affected both the PS5 and Xbox Series consoles. Moreover, we also reported on Steam Deck sales falling dramatically after Valve increased the handheld’s price. That is hard to ignore, and ultimately affects AMD, which provides the internal hardware for these devices.
As for the overall Client and Gaming segment, its revenue was $3.8 billion, which is still up 6% year-over-year. That’s mainly due to Ryzen processors being in demand for prebuilt PCs elsewhere, while consumer-focused Ryzen and Radeon demand is still struggling.
Looking at the bigger picture, it is hard to ignore the clear pattern that AMD, Intel, and NVIDIA are all showing. They are not exactly hiding their cards about where their focus lies currently, and with data center revenue far outpacing anything from the gaming world, it is hard to make an argument against those priorities.
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[PC Hardware Specialist]
Usman Saleem brings 8+ years of comprehensive PC hardware expertise to the table. His journey in the tech world has involved in-depth tech analysis and insightful PC hardware reviews, perfecting over 6+ years of dedicated work. Usman’s commitment to staying authentic and relevant in the field is underscored by many professional certifications, including a recent one in Google IT Support Specialization.
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