Analysis: dark times for the PC
It's no surprise that AMD has 'followed the money', as the old saying goes, because this is how businesses work, and profits reign supreme. Data center GPUs are way more profitable than consumer models.
If we look at the amount of revenue that AMD raked in from its data center business in this latest quarter, it very nearly doubled year-on-year and was up 97% to $8.5 billion. That dwarfed client and gaming (Ryzen and Radeon, mostly consumer) revenue, which was $3.7 billion (down 8%).
Looking at the balance sheet, it's clear enough AMD is a data center-first company — but actually saying this out loud, in no uncertain terms, sends out further signals about where Team Red wants to be, along with all the messaging that AI is the future.
Is it any wonder that gamers feel bitter about this? Hardly. Back at the start of 2024, AMD's consumer revenue was actually more than data center, albeit only marginally, but still — that picture has shifted massively over the past couple of years.
And with the prices of consumer GPUs shooting up as graphics chip production is increasingly prioritizing AI accelerators for data centers, there's a lot of bad feeling for obvious reasons. Nvidia's graphics card business is the same story too, of course, and GPU price hikes have been getting out of hand in the past few months for GeForce and Radeon cards alike.
Given clear negative predictions about the PC market next year — with AMD joining in on that — and the company's equally clear unwillingness to do anything about that with its plentiful resources, consumers are looking at a dismal future. One in which I fear that GPU price hikes are going to follow in the footsteps of steep RAM and SSD inflation, which has become beyond painful at this stage. Many forecasts point to the RAM crisis getting worse in 2027, of course.
All of which means it's hardly surprising that there's a profound sense of disappointment in AMD on social media, given this fresh data center comment from Lisa Su.
One Redditor declared: "AMD was a lot of people's last hope, but looks like PC gaming is over."