AMD’s data center business has become its largest revenue source as strong demand for artificial intelligence infrastructure reshapes the company. Data center revenue jumped 107% year over year to a record $6.7 billion during the second quarter of 2026. The segment generated 58% of AMD’s total quarterly revenue, compared with about 42% a year earlier. Demand for AMD’s Instinct AI accelerators and EPYC server processors drove the growth. Major agreements with companies including Anthropic and Core Scientific also strengthened its position in the AI infrastructure market.

The segment generated 58% of AMD’s total quarterly revenue, compared with about 42% a year earlier. Demand for AMD’s Instinct AI accelerators and EPYC server processors drove the growth. Major agreements with companies including Anthropic and Core Scientific also strengthened its position in the AI infrastructure market.

AMD’s gaming revenue fell 31% year over year to $779 million, making it the company’s smallest business segment. Embedded revenue was higher at $977 million.

Lower semi-custom chip sales during the later stage of the current console cycle contributed to the decline. Higher industry-wide component costs also increased graphics card prices and weakened consumer demand.

Despite the gaming decline, AMD’s total revenue rose 50% to a record $11.5 billion. Its client business also performed strongly, with revenue increasing 23% to $3.1 billion due to demand for Ryzen processors.

However, AMD shares dropped nearly 9% in after-hours trading. Although the company beat Wall Street’s quarterly revenue expectations, investors appeared to expect even stronger results and guidance from its rapidly expanding AI business.

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