AMD data center revenue jumps 107% as AI demand offsets gaming

AMD's data center revenue reached $6.7 billion, up 107% year-over-year and up from $5.8 billion in Q1, driven by AI compute demand. Gaming revenue fell 31% to $779 million on price hikes and component shortages. AMD said it expects data center revenue to more than double again in 2027.

Why it matters: AMD's results show AI compute has become the dominant growth driver even for a company historically anchored in gaming and PC hardware, echoing similar AI-driven revenue shifts reported by SpaceX this same week.