Lisa Su calls AMD a data center-first company as she warns of a PC slump
AMD's gaming revenue fell 40% to $773 million last quarter on weaker console-chip and GPU sales, and AMD now expects PC shipments to drop by double digits.
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AMD chief executive Lisa Su called AMD "a data center first company" in a Yahoo Finance interview on November 5, 2026, two days after AMD reported a record third quarter in which its gaming business fell 40% year on year. On the earnings call, AMD also said it expects a double-digit drop in PC shipments in 2027.
For PC and console players, the key number is AMD's own: gaming revenue of $773 million in the quarter, which AMD blames on lower semi-custom chip sales, the chips inside consoles, and lower graphics card revenue.
What's confirmed
The quarter. AMD's November 3 release lists third-quarter revenue of $13.4 billion, up 45% year on year. Data Center revenue hit a record $8.5 billion, up 97%, on EPYC server processors and the first Instinct MI450 GPUs. VideoCardz puts the Data Center share at about 64% of total revenue.
Gaming and client. The Client and Gaming segment made $3.7 billion, down 8%. Inside it, the client business (mostly Ryzen processors) grew 7% to $2.9 billion, driven by Ryzen mobile chips, while gaming fell 40% to $773 million.
What Su said. In the interview, as reported by PC Gamer, VideoCardz and TechSpot, Su said AMD expects its data center business to grow about 50% from the third quarter to the fourth and is aiming to more than double it next year. Asked about falling tech valuations, she said the market can be "a little bit short-sighted" and that AMD invests with a three-to-five-year view.
Outlook. AMD guides fourth-quarter revenue to about $17 billion, plus or minus 3%. PC Gamer and VideoCardz report that AMD expects PC shipments to fall by double digits in 2027.
Consumer products. AMD's release highlights the Ryzen AI Halo platform and Ryzen AI Max PRO 400 systems from HP, Lenovo, Framework and GMKtec. VideoCardz notes that AMD has not launched a new desktop Ryzen or Radeon generation this year.
Background
AMD's PC gaming reputation was rebuilt on consumer chips: Ryzen in 2017 brought it back into desktop CPUs, and the Radeon RX 6000 series in 2020 made it competitive at the high end again. At the same time, its semi-custom business supplies the processors inside the PS5 and Xbox Series consoles, which is why console cycles show up in AMD's gaming line.
The data center shift follows Nvidia, which TechSpot says now books about 92.5% of its revenue from data centers. The memory squeeze driven by AI servers has also pushed up RAM and graphics card prices this year, which TechSpot and PC Gamer link to the weaker gaming numbers and the expected PC slump.
My take: what it means for players
I do not read "data center first" as AMD leaving gaming. The client business grew, and console chips are a cyclical business: the PS5 is six years old and just passed 100 million shipped, so a semi-custom slowdown is normal late in a generation. What worries me is the graphics side. When a company's best silicon and memory allocation can earn far more in a server rack, consumer GPUs get the leftovers.
We have seen a version of this before. The 2017 to 2018 crypto boom emptied shelves and pushed Radeon cards far above list price, and gamers paid for a market they were not part of. This time the demand comes from AI data centers, and Su's own three-to-five-year horizon suggests it will not pass quickly.
For players in Malaysia and the rest of Southeast Asia, I would not plan an upgrade around a big price drop on current cards. If you need a new GPU for the holiday season, buy on value now; if your current card still runs what you play, sitting out 2027 looks like the smarter bet.
What we don't know yet
- Next Radeon generation. AMD has not announced dates for new consumer GPUs.
- Next desktop Ryzen. No launch date for a new desktop Ryzen generation has been given.
- Regional prices. AMD did not discuss pricing, and we have not checked GPU prices in ringgit or other SEA currencies.
- Next-gen consoles. AMD did not give a timeline for semi-custom chips for future consoles.
Quick facts
| Key | Value |
|---|---|
| Q3 2026 revenue | $13.4 billion, up 45% |
| Data Center | $8.5 billion, up 97% |
| Gaming | $773 million, down 40% |
| Client | $2.9 billion, up 7% |
| Q4 2026 guidance | About $17 billion, plus or minus 3% |
| Interview | Yahoo Finance, November 5, 2026 |
FAQ
Is AMD leaving PC gaming?
No. Su called AMD data center first, but AMD still sells Ryzen and Radeon products, and its client business grew 7% last quarter.
Why did AMD's gaming revenue fall 40%?
AMD says it was due to lower semi-custom revenue, which covers console chips, and lower graphics revenue.
Will GPU prices go down in 2027?
AMD has not said. With data center demand still rising and a PC slump expected, a quick drop looks unlikely, but that is our reading, not an AMD forecast.
What did AMD say about PC sales?
PC Gamer and VideoCardz report that AMD expects a double-digit decline in PC shipments in 2027.
More: PS5 passes 100 million shipped, almost six years after launch.
Sources: AMD (Q3 2026 results press release); PC Gamer; VideoCardz; TechSpot. Image: PC Gamer feed image.
