AMD expects its gaming segment revenue to decline by more than 20% in the second half of 2026. The company cited higher memory and component costs as the primary reason. The forecast was shared during AMD's Q1 2026 earnings call on May 6, 2026.
Memory and component costs drive decline
AMD's overall Q1 2026 revenue reached $10.3 billion, a 38% increase year over year. Net income rose 45% to $2.265 billion. Data center revenue grew 57% to $5.8 billion, while client and gaming revenue combined grew 23% to $3.6 billion.
CEO Lisa Su stated that PC shipments are expected to decline in the second half of the year due to higher memory and component costs. The company's CFO added that gaming segment revenue would drop more than 20% in the same period.
The gaming segment's decline contrasts with AMD's strong performance in data center and client markets. The company's overall revenue growth was driven largely by data center demand, which offset weakness in gaming. AMD has not confirmed whether the gaming revenue decline will affect its long-term product roadmap.
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