- AMD’s quarterly revenue rises despite increasing pressure in the global PC market
- Memory and SSD prices make new PC versions increasingly unrealistic
- AMD expects PC demand to decline even as its own sales rise
Memory and SSD prices have continued to rise sharply, creating major hurdles for building new PCs, as in some cases RAM kits now cost four times more than recent lows, but despite these pressures, AMD expects its PC business to grow in 2026.
“Even in that environment, with the PC market down, we think we can grow our PC business… I think the PC market is an important market. Based on everything we’re seeing today, we’re probably seeing the PC market [Total Addressable Market] a little bit,” said AMD CEO Dr. Lisa Su in announcing the company’s most recent financial results.
“Our focus areas are enterprises… and we continue to grow at the upper end, you know, of the market.”
PC market challenges persist
AMD announced $10.3 billion in revenue for its most recent financial quarter, up 34% year-over-year and bringing total annual revenue to $34.6 billion.
The results include $440 million in inventory of Instinct MI308 accelerators, of which export controls removed about $360 million.
MI308’s total revenue from sales to China reached about $390 million during the quarter. Gross margin was 54% and net income was $1.5 billion.
For the full year, AMD reported non-GAAP gross margin of 52% and $6.8 billion in net revenue, reflecting stable financial performance despite broader market uncertainty.
AMD’s data center business is now its largest segment, generating $5.4 billion during the quarter, up 39% year over year.
Full-year data center revenue reached $16.6 billion, representing 32% growth, although still lower than Nvidia’s data center revenue of $51.2 billion.
The Client and Gaming segment posted $3.9 billion for the quarter, up 37% year-over-year, with full-year revenue reaching $14.6 billion, up 51%.
Exclusive gaming revenue increased 50% to $843 million, driven by semi-custom consoles like the PlayStation 5 and handheld devices like the Steam Deck, along with Radeon GPUs.
AMD’s Ryzen CPUs are in the customer business, and demand for GPUs and AI tools continues to shape revenue trends.
The integrated segment generated $950 million during the quarter, up 3% year-over-year, although full-year revenue declined 3% to $3.5 billion.
AMD has said that growth in premium business products and customer upgrades could offset slower performance in smaller segments, particularly as RAM and SSD prices remain high.
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