AMD gaming revenue drops 40% as 2027 PC shipments face double-digit decline

AMD posted its most profitable quarter ever, but rising hardware costs are hitting its consumer hardware business hard. During an earnings call for the third quarter of 2026, AMD leader Lisa Su stated that computer deliveries are projected to drop significantly next year. Sales of personal computers slowed down near the end of the period due to expensive RAM and parts.

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Gaming division revenue fell by 40% year-on-year, primarily driven by lower semi-custom sales as console sales slump. At the same time, reports say AMD started charging board partners 8 to 10% more for GDDR6 memory starting on October 1, with further price hikes planned for November. Firm representatives anticipate that the most difficult phase for RAM requests will occur from late 2026 through mid-2027.

Despite consumer declines, AMD data centre and AI business is booming. Overall revenue increased by 45% year-on-year, while earnings per share climbed by 74%. Earnings for Radeon AI PRO also saw substantial growth compared to the previous period. Su says the company expects to outperform the broader market through its upcoming Ryzen roadmap, which is widely rumored to feature Zen 6 desktop CPUs with up to 12 cores on a single CCD.