‘We now expect second half gaming revenue to decline more than 20%’: AMD feeling the sting of the memory supply crisis
AMD reported first quarter 2026 revenue of $10.3 billion, representing 38% year-over-year growth driven primarily by strong demand for high-performance CPUs and accelerators from the artificial intelligence industry. The company’s data centre segment alone generated $5.8 billion in revenue, demonstrating AI’s outsized influence on AMD’s business.
However, the semiconductor manufacturer faces significant near-term headwinds from the industry-wide memory supply crisis. AMD has revised its financial guidance downward, now expecting gaming revenue to decline more than 20% during the second half of 2026. The company acknowledges that memory supply constraints represent a challenge affecting all industry participants, not just AMD itself.
The divergence between AMD’s booming data centre operations and declining gaming prospects reflects the semiconductor industry’s current bifurcation. While artificial intelligence drives unprecedented demand for high-end compute hardware, the gaming segment faces temporary supply chain constraints that are expected to persist through the remainder of the year.