AMD's Datacenter Revenue Surges as AI Demand Booms, Gaming Division Contracts

AMD's datacenter revenue reached $6.7 billion in the second quarter, more than doubling year-over-year and increasing from $5.8 billion in the previous quarter, driven by strong demand for AI compute capacity. The company's gaming division contracted 31% to $779 million due to price increases and component shortages affecting Xbox Series X/S, PlayStation 5, and Valve Steam Deck sales. Datacenter now represents 58% of AMD's total revenue, reflecting the company's growing focus on AI infrastructure.