- AMD quarterly revenue surges despite mounting pressure across the global PC market
- Memory and SSD prices are making new PC builds increasingly unrealistic
- AMD expects PC demand to decline even while 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 believe 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 [Total Addressable Market] down a bit,” AMD CEO Dr. Lisa Su said announcing the company’s most recent financial results.
“Our focus areas are enterprise… and just continuing to grow at the premium, you know, higher end of the market.”
PC market challenges remain
AMD announced $10.3 billion in revenue for its most recent financial quarter, marking a 34% year-over-year increase and bringing total annual revenue to $34.6 billion.
The results include $440 million in inventory of Instinct MI308 accelerators, of which export controls cleared about $360 million.
Total MI308 revenue from sales to China reached about $390 million during the quarter. Gross margin stood at 54%, with net income totaling $1.5 billion.
For the full year, AMD reported a 52% non-GAAP gross margin and $6.8 billion in net income, reflecting steady financial performance despite broader market uncertainty.
AMD’s data center business is now its largest segment and generated $5.4 billion for the quarter, up 39% year-over-year.
Full year data center revenue reached $16.6 billion, representing 32% growth, although it remains smaller than Nvidia’s data center revenue of $51.2 billion.
The client and gaming segment posted $3.9 billion for the quarter, a 37% year-over-year increase, with full year revenue reaching $14.6 billion, up 51%.
Gaming-only revenue rose 50% to $843 million, driven by semi-custom consoles such as the PlayStation 5 and handheld devices like the Steam Deck, along with Radeon GPUs.
AMD’s Ryzen CPUs fall under the client business, and demand for GPUs and AI tools continues to shape revenue trends.
The embedded segment generated $950 million for the quarter, up 3% year-over-year, although full year revenue declined 3% to $3.5 billion.
AMD has said that growth in premium enterprise products and client upgrades could offset slower performance in smaller segments, particularly as RAM and SSD prices remain high.
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