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Advanced Micro Devices AMD is witnessing combined situations in its gaming enterprise. In the primary quarter of 2026, gaming revenues grew 11% yr over yr to $720 million. The improve was primarily pushed by robust gross sales of the corporate’s new Radeon 9000 sequence graphics playing cards, which helped offset weaker efficiency in different gaming-related areas.
However, revenues dropped 15% sequentially, reflecting the anticipated softness available in the market.
AMD’s semi-custom enterprise, which makes chips for gaming consoles, noticed revenues decline from the year-ago interval, as anticipated, given the late stage of the present console cycle. Although buyer demand for next-generation console platforms stays encouraging, gross sales of current gaming consoles proceed to be affected as these platforms mature.
AMD expects second-quarter 2026 complete revenues to extend 9% sequentially, pushed by double-digit progress in each Data Center and the Embedded segments and modest progress within the Client and Gaming segments. On a year-over-year foundation, complete revenues are anticipated to leap 46%. The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $11.27 billion, suggesting 46.6% progress from the determine reported within the year-ago quarter. The consensus mark for 2026 revenues is pegged at $48.69 billion, indicating 40.5% progress from 2025.
AMD expects the gaming market to stay underneath stress within the second half of 2026. The firm mentioned that rising reminiscence and different part prices are making gaming merchandise costlier, much like traits within the PC market. As a end result, customers might reduce on spending, which may harm demand for gaming {hardware} and associated merchandise.
The firm is adopting a cautious strategy towards its gaming enterprise within the second half of 2026. Notably, AMD is planning conservatively, given the present market surroundings. AMD expects gaming revenues within the second half of the yr to be greater than 20% decrease than within the first half of 2026. Gaming revenues had already declined 15% sequentially within the first quarter, highlighting the continued slowdown in gaming demand.
Tough Competition Hurts AMD’s Prospects
AMD’s prospects endure from stiff competitors from the likes of NVIDIA NVDA and Intel INTC. Both NVIDIA and Intel are increasing their footprints within the gaming area.
NVIDIA’s Edge Computing market platform, which encompasses gadgets equivalent to PCs, gaming consoles and workstations, generated $6.4 billion in revenues for the fiscal first quarter of 2027. This represents a ten% quarter-over-quarter improve and a 29% rise yr over yr. This strong progress highlights the continued demand for NVIDIA’s merchandise within the gaming and edge system markets.
Intel’s increasing portfolio has been noteworthy. In May 2026, Intel introduced the launch of Intel Arc G-Series processors, a brand new household of handheld gaming processors constructed on the Intel Core Ultra Series 3 (Panther Lake) structure. The processors are designed to ship larger gaming efficiency, improved energy effectivity and longer battery life for next-generation handheld gaming gadgets. Intel highlighted upcoming techniques from companions, together with Acer, MSI and OneXPlayer.
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