- AMD’s quarterly revenue rises despite mounting pressure across the global PC market
- Memory and SSD prices are making new PC builds increasingly unrealistic
- AMD expects PC demand to fall even as its own sales rise
Memory and SSD prices have continued to rise sharply, creating major hurdles to building new PCs, with RAM kits in some cases now costing four times more than recent lows – but despite this pressure, 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 probably see the PC [Total Addressable Market] slightly down,” AMD CEO Dr. Lisa Su said when announcing the company’s latest financial results.
“Our focus areas are business… and continuing to grow to the higher end of the market, you know.”
There are still challenges in the PC market
AMD announced $10.3 billion in revenue for its latest fiscal 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 was 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 stable financial performance despite broader market uncertainty.
AMD’s data center business is now its largest segment and generated $5.4 billion in the quarter, up 39% year-over-year.
Full-year data center revenue reached $16.6 billion, representing 32% growth, though still less than Nvidia’s data center revenue of $51.2 billion.
The consumer and gaming segment posted $3.9 billion in the quarter, up 37% year-over-year, with revenue of $14.6 billion for the full year, up 51%.
Gaming-only revenue rose 50% to $843 million, driven by semi-custom consoles like the PlayStation 5 and handhelds like the Steam Deck, along with Radeon GPUs.
AMD’s Ryzen CPUs fall under the client business, and demand for GPUs and AI tools continue to shape revenue trends.
The embedded segment generated $950 million in the quarter, up 3% from a year earlier, although full-year revenue fell 3% to $3.5 billion.
AMD has said growth in premium enterprise products and client upgrades could offset slower performance in smaller segments, especially as RAM and SSD prices remain high.
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