AMD declares data-center-first strategy as gaming revenue falls
AMD CEO Lisa Su said the company is now "data center first," presenting data centers as central to its identity and growth. TechSpot reported that AMD's third-quarter 2026 revenue reached a record $13.4 billion, up 97% from a year earlier, while gaming revenue fell 40% to $773 million. Instinct AI accelerators and EPYC server processors were cited as key drivers. On AMD's earnings call, Su said the company was planning for global PC-market unit shipments to decline by a double-digit percentage in 2027, while expecting AMD to outperform the market through its Ryzen roadmap.
Data centers contributed about 63% of AMD's third-quarter 2026 revenue, while gaming revenue declined sharply. This supports the significance of AMD's stated strategic focus on AI infrastructure and server computing, although the company did not announce an end to its Radeon or Ryzen businesses.
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A hot potato: Rest in peace, dedicated consumer GPU makers. With Nvidia having long been an AI firm with a passing interest in making prohibitively expensive consumer graphics cards, AMD's boss has confirmed that Team Red now considers itself a "data center-first" company. With the data center segment making up about 63% of AMD's record third-quarter 2026 revenue, it's easy to see why CEOs are moving away from PC gaming to follow the money.
Su made her remarks in an interview with Yahoo Finance's Brian Sozzi, where she presented data centers as central to AMD's identity and growth.
"We are a data center first company, that is our profile and you know, people need more computing to power all these applications," Su said.