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

AMD beat quarterly expectations on strong data center and AI demand, with CEO Lisa Su and CFO Jean Hu highlighting rapid growth in Epyc and Instinct GPUs.

But the company warned that rising memory and component costs will weigh on consumer hardware, especially Radeon GPUs, gaming laptops, and consoles.

AMD now expects second-half gaming revenue to fall more than 20% from the first half as GDDR, HBM, and DRAM prices stay elevated.

The outlook suggests AI-driven memory demand is boosting costs across the PC and gaming market even as AMD’s data center business keeps expanding.