AMD warns gaming revenue will plunge over 20% as memory prices drive up PC hardware costs

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Winners & losers: AMD's AI business is booming, but, as we all know, that's not good news for gamers. The company says rising memory and component prices will hit demand in the second half of 2026, with gaming revenue now expected to fall by more than 20% from the first half.

AMD's first-quarter results were good news for investors. Revenue hit $10.3 billion, up 38% year over year, while the data center segment climbed 57% to $5.8 billion on the back of Epyc CPUs and Instinct GPUs. Client and Gaming also improved, rising 23% to $3.6 billion, with gaming revenue up 11% to $720 million thanks to solid Radeon GPU demand.

But AMD's outlook wasn't so positive. The company said it is preparing for weaker PC shipments and a sharper pullback in gaming...

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