AMD achieved a record-breaking revenue of $11.5 billion in the second quarter of 2026, with its data center segment contributing $6.7 billion, more than double its revenue from the same period last year. This significant growth in the data center business, fueled by the booming AI industry, saw it generate over eight times the revenue of AMD's gaming division.
In contrast, AMD's gaming segment reported $779 million in revenue, marking a 31% decrease year-over-year. This decline can be attributed to several factors. The aging PlayStation 5 console, coupled with its recent price increases, has led to fewer unit shipments and consequently fewer custom AMD chips sold to Sony. A similar trend is likely affecting Xbox sales. Additionally, the ongoing memory supply crisis, where AI data centers have been consuming large quantities of RAM and SSDs, has driven up prices for these components and other consumer-oriented hardware. This increased cost for high-end processors and graphics cards for gaming has reduced consumer demand.
While the gaming segment experienced a downturn, AMD's client business, which includes lower-end and mobile Ryzen processors, saw a 23% increase in revenue, reaching $3.1 billion. This growth was driven by a 29% rise in client processor unit shipments, despite a slight decrease in the average selling price.
AMD's overall performance surpassed Wall Street's expectations of $11.25 billion, underscoring the company's diversification beyond its traditional gaming focus. The strong performance in the data center segment highlights AMD's significant role in the ongoing build-out of AI infrastructure, positioning it as a major player in both the computing and data center markets.