AMD states it remains committed to the PC market, but its latest financial report shows that the data center business is rapidly becoming its primary focus. Server processors and AI accelerators now contribute nearly two-thirds of the company's revenue, while gaming chip sales are declining, and the share of PC chips in total revenue continues to shrink.
AMD reported record quarterly revenue of $13.4 billion, a 45% year-over-year increase. Its data center segment revenue reached $8.5 billion, nearly double that of the same period last year, primarily thanks to EPYC server processors and Instinct AI accelerators.
The situation in the gaming industry is quite different. Due to a double decline in sales of Radeon graphics cards and semi-custom chips used in game consoles, gaming industry revenue fell 40% year-over-year to $773 million.
The client business, covering Ryzen processors for desktops and laptops, performed relatively well. Revenue grew 7% year-over-year to $2.9 billion, mainly driven by mobile Ryzen processors and Ryzen PRO-based commercial systems. However, revenue dropped 4% compared to the previous quarter. Rising prices for memory and components have made buyers more cautious, and sales of high-end processors only partially offsetted the weak demand.
By analyzing the contribution of each business segment to AMD's overall revenue, the transformation trend of the data center business becomes clearer. Over the past five quarters, the client business's share has dropped from about 30% to 22%. This does not necessarily mean a significant drop in PC processor sales: the server business is growing much faster than PCs. AMD does not disclose Ryzen processor revenue separately, so the client business performance cannot directly reflect Ryzen processor sales. Even so, PC processors currently account for a relatively small proportion of the company's revenue.
This gap may widen further. AMD expects fourth-quarter data center revenue to grow by approximately 50% compared to the third quarter, while combined revenue from its client and gaming businesses is expected to drop by more than 20%. The company also predicts a double-digit percentage decline in global PC shipments in 2027 as prices for memory and other components rise.
Despite this, CEO Lisa Su stated that the PC market remains crucial for AMD. The company plans to focus on commercial systems, high-end consumer PCs, and desktops sold through retail channels—areas where AMD believes it can outperform the overall market. Su also noted that AMD's supply chain flexibility allows it to dynamically allocate capacity between PC and server processors based on demand changes.
