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AMD has been one of the biggest names in PC gaming for years, thanks to its Ryzen processors and Radeon graphics cards. However, the company’s priorities appear to be changing, as the growing demand for AI hardware is bringing in significantly more money than its consumer products. Its latest financial results show just how big this shift has become, with data center revenue nearly doubling while gaming revenue has dropped by a massive 40%.
AMD recently published its financial results for the third quarter of 2026, reporting a record $13.4 billion in total revenue, representing a 97% increase compared to the same period last year. While these numbers are impressive, most of the growth came from the company’s data center business rather than its traditional consumer hardware.
The data center segment alone generated $8.5 billion, accounting for approximately 63% of AMD’s total quarterly revenue. This includes sales of its EPYC server processors and Instinct AI accelerators, both of which have benefited from the rapid expansion of AI infrastructure around the world.
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And AMD expects this business to become even more important in the coming years. During the company’s earnings call, CFO Jean Hu revealed that AMD expects data center products to account for more than 80% of its total revenue beyond 2027. In an interview with Yahoo Finance, AMD CEO Lisa Su said they are “a data center first company” and “that is our profile.” She further added, “people need more computing to power all these applications.”
This is a significant change for a company that many consumers primarily associate with gaming processors and graphics cards. While AMD isn’t abandoning its consumer products, the financial results make it clear that data centers are becoming the company’s biggest priority.
Unfortunately, the situation looks very different for its gaming division. AMD reported $773 million in gaming revenue, a 40% decline compared to the same quarter last year. The company attributed this drop mainly to lower sales of semi-custom chips and graphics products.
For those unfamiliar, AMD’s semi-custom business includes the processors used in consoles such as the PlayStation 5 and Xbox Series X|S. It also covers chips powering popular gaming handhelds, including the Steam Deck, ASUS ROG Xbox Ally X, and Lenovo Legion Go 2. The graphics business, meanwhile, includes products such as the Radeon RX 9000 series. With gaming hardware becoming increasingly expensive, consumers appear to be spending less on new devices and upgrades.
A major reason behind this slowdown is the ongoing memory crisis, which has pushed the prices of RAM, storage, and other PC components significantly higher. The massive demand from AI companies and data centers has added further pressure to the supply of these components, making it harder for manufacturers to keep consumer hardware affordable.
Lisa Su acknowledged the problem during the earnings call, explaining that rising component costs are affecting the prices of complete systems and making consumers more cautious about their purchases. And the company isn’t expecting an immediate recovery. AMD is already preparing for PC shipments to decline by a double-digit percentage in 2027, suggesting that the current problems could continue well into next year.
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