AMD's latest quarterly earnings show a stark divide between its booming data centre business and a struggling gaming division, underlining how demand for AI computing power is reshaping the chipmaker's revenue mix. Data centre sales more than doubled year-on-year to $6.7 billion (£5.3 billion), while gaming revenue slumped as price rises and component shortages hit console and handheld sales.

Data centre revenue climbed from $3.2 billion a year earlier, a 107% increase, and rose from $5.8 billion in the previous quarter, driven largely by AI capacity demand. Gaming revenue fell 31% year-on-year to $779 million, hurt by weaker sales of the Xbox Series X/S, PS5 and Steam Deck. Overall, AMD posted record quarterly revenue of $11.5 billion, up 50% year-on-year, with data centre now accounting for 58% of the company's total revenue; its client business, boosted by Ryzen processor sales, grew 23%.