AMD reports $2.8 billion datacenter revenue, growing 4x faster than gaming business, affirming datacenter-first strategy.
AMD has formally positioned itself as a "data center first" company, according to a statement made by chief executive Lisa Su at the Goldman Sachs Communacopia And Technology Conference. "In our last quarter, I think data center was over 50% of our revenue," Su said. "So, we really are a data center-first company." This marks a significant pivot from AMD's historical focus on client CPUs for midrange PCs, with the company's EPYC processors now driving the majority of its business.
The financial scale of this shift is substantial. In the last quarter, AMD's data center revenue reached $2.834 billion, far outpacing its client and gaming business divisions, which posted $1.492 billion and $648 million in sales, respectively. AMD's data center business accounted for 48% of the company's revenue, with the EPYC CPU serving as its main product and source of income.
This transformation reflects AMD's dramatic gains in the data center market over recent years. Su emphasized the scale of growth achieved, noting: "When you think about where we started, the data center business, as you said, we had a low single-digit share. It was a similar percentage of our revenue. In our last quarter, I think data center was over 50% of our revenue. So, we really are a datacenter first company." The success of the EPYC processor has fundamentally reshaped the company's revenue streams and strategic priorities.
However, this focus on data centers has raised questions about AMD's other business units. The company expects a 20% decline in gaming revenue from higher component costs in the second half of 2026, suggesting that other divisions may face constraints as resources concentrate on the data center market. AMD is working to address long-standing challenges in graphics through architectural innovations, blending RDNA (graphics) and CDNA (compute) into UDNA, while simultaneously advancing its Zen 7 architecture for CPUs.