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

AMD reported a significant increase in data center revenue, reaching $6.7 billion in its latest earnings report, up 107% year-over-year. This figure surpasses the $5.8 billion reported in Q1, driven by the growing demand for AI capabilities. CEO Lisa Su indicated that the company expects data center revenue to more than double again by 2027. In contrast, gaming revenue fell by 31% to $779 million, impacted by price hikes and component shortages, which negatively affected sales of the Xbox Series X/S and PS5.