AMD Goes "Data Center First" While Gaming Revenue Drops 40%
AMD CEO Lisa Su now calls AMD a "data center first" company, two days after AMD reported a 40% drop in gaming revenue.
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AMD's data center segment generated $8.5 billion in the third quarter, representing 97% growth and accounting for 64% of the company's $13.4 billion total revenue. CEO Lisa Su stated that data center should expand 50% sequentially from Q3 to Q4, with potential to more than double the following year. This shift reflects data center's growing dominance compared to a year ago when it represented 47% of revenue.
Gaming revenue fell to $773 million, dropping 40% and comprising less than 6% of total revenue. AMD attributed the decline primarily to reduced semi-custom sales, which include console chips for Sony and Microsoft, alongside weaker graphics demand. Gaming revenue remained flat compared to the previous quarter but fell significantly from the prior year's third quarter, which had benefited from a 181% surge in console-driven sales.
Su characterized AMD as a "data center first" company during a November 5 interview with Yahoo Finance. The company's strategic repositioning reflects the expanding role of data center operations in its overall business portfolio. This marks a continuation of AMD's previous emphasis on data center growth announced earlier in 2024.
What happened
AMD CEO Lisa Su now calls AMD a "data center first" company, two days after AMD reported a 40% drop in gaming revenue. Speaking to Yahoo Finance's Brian Sozzi on November 5, Su said AMD's data center business should grow 50% sequentially from Q3 to Q4, and suggested it could more than double next year. Lisa Su, AMD CEO We are a data center first company, that is our profile, and you know, people need more computing to power all these applications. Data Center brought in a record $8.5 billion in Q3, up 97%, and now makes up 64% of AMD's $13.4 billion total, up from 47% a year ago. Gaming fell to $773 million, or under 6% of revenue.
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