AMD CEO Lisa Su rebranded the company as "data center first" following a 40% gaming revenue drop. Speaking to Yahoo Finance on November 5, Su projected 50% sequential data center growth from Q3 to Q4 and potential doubling next year. Data center revenue hit a record $8.5 billion in Q3, up 97%, now comprising 64% of total revenue from 47% year-over-year.
Conversely, gaming revenue fell to $773 million, under 6% of the total, primarily due to lower semi-custom console sales for Sony and Microsoft. AMD attributed the decline to weaker graphics demand and a high comparison against last year's 181% console-driven surge. On the consumer side, Su warned of over 20% Q4 declines in Client and Gaming segments, a double-digit PC shipment drop in 2027, and potential Radeon GPU and GDDR6 price hikes.
She dismissed short-term market worries as "short-sighted," emphasizing a three-to-five-year strategic outlook.
Source: TechPowerUp News · Summarized by HeadlinesBriefing