Advanced Micro Devices reported a record revenue of $11.5 billion for the second quarter of 2026, driven by strong growth in its data center division. Global demand for artificial intelligence infrastructure boosted data center revenue by 107 percent year-over-year to $6.7 billion, while gaming revenue saw a major decline.
Total revenue for the quarter grew 50 percent compared to the same period last year and 13 percent from the previous quarter. Chief Financial Officer Jean Hu stated that the data center division alone generated 58 percent of the company's total revenue. Data center revenue climbed from $5.8 billion in the first quarter to $6.7 billion in the second quarter, more than doubling from $3.2 billion recorded in the same period last year.
Chief Executive Officer Lisa Su emphasized that artificial intelligence played a decisive role in the company's expansion. Su said demand for computing capacity is rising rapidly across all markets, adding that AMD expects data center segment revenue to more than double again year-over-year in 2027.
Gaming revenue decline
The company's gaming division posted $779 million in revenue for the quarter, representing a 31 percent drop from the same period last year. AMD attributed the downturn primarily to gaming consoles approaching the end of their lifecycles and rising component costs across the industry.
Su noted that higher component costs raised graphics card prices, which weighed on consumer demand. Slower chip sales for the Xbox Series X/S, PlayStation 5, and Valve Steam Deck contributed to the decline, with AMD management expecting weak gaming market conditions to persist through the second half of the year.
PC business and enterprise growth
Despite the drop in gaming revenue, AMD's total personal computer business, which combines client and gaming operations, generated $3.8 billion in revenue for a 6 percent year-over-year increase. Strong demand for Ryzen desktop and laptop processors supported the growth. Su stated that sales of Ryzen PRO processors rose more than 50 percent year-over-year, supported by new customer contracts across the healthcare, technology, automotive, and finance sectors.
Revenue in the embedded systems division reached $977 million, up 19 percent year-over-year due to higher customer demand. Looking ahead to the third quarter, AMD forecasts revenue of approximately $13 billion, which would mark a 41 percent year-over-year increase driven by strong double-digit growth in data center sales.
