Despite the escalating cost of PC hardware, potentially exacerbated by the AI industry's substantial demand for memory, AMD CEO Lisa Su remains optimistic about the future of AI-equipped personal computers. Su indicated during AMD's recent earnings call that "AI PCs will become more important" for the average consumer.
Su elaborated on AMD's product strategy, stating, "As we go into 2027, I think we have a strong product portfolio that is coming on board to address not just the traditional notebook and desktop markets, but also as you think about a more AI-centric PC experience, like what we have been talking about with the Ryzen AI Halo."
This outlook comes as AMD reported record total revenue of $11.5 billion in the second quarter, a significant portion of which is attributed to data center demand. The company acknowledges the current volatility in hardware pricing, with Su noting, "The market itself will depend a bit on some of the components. We’re all watching the component costs and how that will play out over the next couple of quarters."
While the gaming segment of AMD's business has seen a 31% contraction, reportedly due to high hardware costs, the company's client segment, which includes CPUs and APUs for desktops and notebooks, has performed strongly. This segment generated approximately $3.1 billion outside of gaming hardware in the first half of the year. Su anticipates year-on-year growth in this consumer-focused sector, even with an expected market decline in the latter half of 2026, a trend that data center demand is expected to offset.
Su expressed confidence in AMD's product lineup and increasing content in the enterprise sector, stating, "I think our portfolio and our rising content in enterprise are very positive for our client mix." However, the continued build-out of AI infrastructure by major technology companies raises questions about the affordability of future AI PCs for consumers already facing high component costs.