AMD warns of a more than 20% drop in second-half gaming revenue, signaling a console cycle downturn amid AI-driven gains.
Advanced Micro Devices (AMD) expects its Gaming division revenue to decline over 20% in the second half of the year, reversing recent growth. The segment posted $720 million in revenue last quarter, up 11% year-over-year, but management cited a maturing console cycle as the key driver of the downturn.
The company previously forecast a significant double-digit decline in semi-custom revenue, which powers game consoles. This shift contrasts with AMD’s booming Data Center segment, where AI demand continues to fuel growth.
AMD stock remains near 52-week highs, but the gaming slowdown could pressure valuations as investors weigh cyclical risks against AI-driven momentum.