AMD reported that its data center business grew sharply in its latest earnings report, driven by demand for AI capacity. Data center revenue more than doubled year-over-year, reaching $5.8 billion in Q1 and rising 107 percent from $779 million. According to the company, total revenue increased 50 percent year-over-year to a record $11.5 billion, with the data center segment accounting for 58 percent of company revenue.
Meanwhile, the gaming side of the business took a backseat, as price increases and component shortages slowed sales for consoles including the Xbox Series X/S, PS5, and Valve’s Steam Deck.
Why it matters
The results reflect how AI infrastructure demand is reshaping AMD’s revenue mix, with the data center segment now representing the majority of company revenue while consumer gaming hardware faces headwinds.
Who should care
Investors, enterprise buyers of AI compute, and observers of the gaming hardware market will find the shift in AMD’s business balance relevant.