AMD’s data center business is booming while gaming takes a backseat

AMD said data center revenue more than doubled year over year to $6.7 billion, driven by demand for AI capacity and up from $5.8 billion in the prior quarter. Gaming revenue fell 31% to $779 million as price increases and component shortages weighed on Xbox, PlayStation, and Steam Deck sales.

AMD’s results show how AI infrastructure is becoming the company’s main growth engine, shifting attention away from its historically important gaming business. The divergence also highlights a broader semiconductor trend: data center chips are benefiting from urgent enterprise spending while consumer hardware remains more exposed to pricing and supply constraints.