This web page was created programmatically, to learn the article in its unique location you possibly can go to the hyperlink bellow: https://www.tomshardware.com/tech-industry/amd-expects-20-percent-decline-in-gaming-revenue-from-higher-memory-and-component-costs-in-the-second-half-of-the-year-ceo-lisa-su-warns-of-further-memory-crunchand if you wish to take away this text from our web site please contact us [ad_1] AMD introduced its monetary outcomes for the primary quarter of 2026 on Tuesday, noting report income within the knowledge middle whereas warning of an extra reminiscence crunch on the buyer aspect. AMD says it is bracing for impression within the second half of the 12 months, noting the headwinds of element pricing and "planning the business accordingly," says AMD CEO Lisa Su.Go deeper with TH Premium: CPU (Image credit score: Tom's Hardware)Breaking down phase financials, Su stated that AMD expects demand to drop off within the second half of the 12 months in each its consumer and gaming companies because of "higher memory and component costs." That's the sentiment we have heard echoed from executives at Micron and SK Hynix, amongst no less than half a dozen others. AMD says it is bracing for fairly the numerous impression to its shopper enterprise within the second half of the 12 months, nonetheless."We expect second half demand in gaming to be impacted by higher component and memory cost," stated AMD's Jean Hu, government vp and Chief Financial Officer at AMD. "We now expect second half gaming revenue to decline by more than 20% compared to the first half."Article continues under You might like There are a few caveats to that quote. First, AMD broadly splits up its enterprise into enterprise, client and gaming, and embedded segments. Here, Hu is talking specifically about gaming revenue — GPUs and consoles — and AMD later noted that consumer demand is partly offset by commercial demand for Ryzen laptops across the entire client segment.Still, gaming demand is important, especially given the state of console prices. Last year, Microsoft increased the price of its Xbox Series consoles twice. In March, Sony announced price hikes across all new PS5 models. And just days ago, Sony increased the price of refurbished PlayStation 5 Slim consoles by $100. The drop in gaming revenue could be a response to these price increases, or they could be a sign that further price hikes are on the way; there's no way to tell without knowing how many consoles Microsoft and Sony are shipping.Although consumers will feel even more of the memory squeeze in the second half of the year, AMD won't. The company says it expects data center CPU revenue to increase 70% year-over-year in the second quarter on the back of increased AI demand. That's certainly possible, as just last month, Intel hit a record-high stock price due to increased CPU demand. Follow Tom's Hardware on Google News, or add us as a preferred source, to get our newest information, evaluation, & evaluations in your feeds.Get Tom's Hardware's greatest information and in-depth evaluations, straight to your inbox. [ad_2] This web page was created programmatically, to learn the article in its unique location you possibly can go to the hyperlink bellow: https://www.tomshardware.com/tech-industry/amd-expects-20-percent-decline-in-gaming-revenue-from-higher-memory-and-component-costs-in-the-second-half-of-the-year-ceo-lisa-su-warns-of-further-memory-crunchand if you wish to take away this text from our web site please contact us