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AMD expects 20% decline in gaming revenue from 'higher memory and component costs' in the second half of the year — CEO Lisa Su warns of further memory crunch

By Source Tom's Hardware UK Published

AMD reported record data center revenue for the first quarter of 2026 while warning of a significant decline in gaming segment earnings due to rising component and memory costs.

Key Points

  • AMD projects a gaming revenue decline of more than 20% in the second half of 2026 compared to the first half.
  • The company expects data center CPU revenue to grow 70% year-over-year in the second quarter, driven by high AI demand.
  • Executives Lisa Su and Jean Hu cited increased memory and component pricing as primary headwinds for the consumer and gaming sectors.
  • Gaming revenue impacts follow recent console price hikes implemented by Sony for the PlayStation 5 and Microsoft for the Xbox Series.

Why it Matters

The shift highlights a growing divergence between the high-growth enterprise AI market and the cooling consumer electronics sector. While data center gains bolster AMD's overall financial health, the cooling gaming market suggests that rising hardware costs may continue to dampen consumer demand for high-end gaming components.
Tom's Hardware UK Published by Jake Roach
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