{"id":919956,"date":"2025-12-27T07:41:16","date_gmt":"2025-12-27T07:41:16","guid":{"rendered":"http:\/\/iNb3K4GZkuiV7wCe8xDSiL"},"modified":"2025-12-27T07:41:16","modified_gmt":"2025-12-27T07:41:16","slug":"amd-sells-1-billion-worth-of-ai-chips-and-cpu-sales-are-up-but-its-gaming-graphics-continues-to-struggle","status":"publish","type":"post","link":"https:\/\/arcader.org\/news\/amd-sells-1-billion-worth-of-ai-chips-and-cpu-sales-are-up-but-its-gaming-graphics-continues-to-struggle\/","title":{"rendered":"AMD sells $1 billion worth of AI chips and CPU sales are up but its gaming graphics continues to struggle"},"content":{"rendered":"<article>\n<p>Sales of AMD&apos;s new AI chips are going gangbusters. Well, relatively speaking. AMD&apos;s latest results for the second quarter of this year showed that the company flogged roughly $1 billion&apos;s worth of its Instinct MI300 AI GPUs in the quarter, up from pretty much zero for the same class of hardware a year ago.<\/p>\n<p>Overall, AMD&apos;s revenues were <a data-analytics-id=\"inline-link\" href=\"https:\/\/ir.amd.com\/news-events\/press-releases\/detail\/1209\/amd-reports-second-quarter-2024-financial-results\" target=\"_blank\" rel=\"noopener\">up 9% to $5.8 billion<\/a> compared to the same period last year. Of course, the relative bit arrives when you compare all that with Nvidia&apos;s AI GPU sales, which came in at roughly $20 billion for the first quarter of 2024. So, AMD has done well to get a foothold in the mega-profitable AI GPU market. But it&apos;s still miles behind Nvidia.<\/p>\n<p>On a related note, AMD&apos;s CEO Lisa Su indicated the company is essentially selling as many Instinct MI300 AI GPUs as it can make. &#8220;The overall supply chain is tight and will remain tight through 2025, &#8221; Su said of the Instinct MI300 (via <a data-analytics-id=\"inline-link\" href=\"https:\/\/seekingalpha.com\/article\/4708251-advanced-micro-devices-inc-amd-q2-2024-earnings-call-transcript\" target=\"_blank\" rel=\"noopener\">Seeking Alpha<\/a>).<\/p>\n<p>Elsewhere, the news was mostly good but with some mixed indicators. Sales of PC processors were up by a hefty 49% to $1.5 billion, for instance. That&apos;s very impressive when you consider AMD is in the process of launching its new Zen 5 chips. Those $1.5 billion of sales will be pretty much all Zen 4 and earlier CPUs. <a data-analytics-id=\"inline-link\" href=\"https:\/\/www.pcgamer.com\/hardware\/processors\/amd-announces-zen-5-and-the-ryzen-9000-series-with-a-16-ipc-uplift-shipping-in-july\/\" target=\"_blank\" rel=\"noopener\">Zen 5 looks very promising<\/a>, so it all bodes very well.<\/p>\n<p>Until you look at AMD&apos;s &#8220;Gaming&#8221; division, that is, where revenues fell by a fairly catastrophic 59%, year on year. To quote Lisa Su again, &#8220;turning to our gaming segment, revenue declined 59% year-over-year to $648 million as semi-custom SoC sales declined in-line with our projections. Semi-custom demand remains soft, as we are now in the fifth-year of the console cycle and we expect sales to be lower in the second half of the year compared to the first half.<\/p>\n<p>&#8220;In gaming graphics, revenue increased year-over-year driven by improved sales of our Radeon 6000 and 7000 series GPUs in the channel,&#8221; she said.<\/p>\n<p>AMD didn&apos;t release specifics regarding Radeon sales. But as we understand it, &#8220;Gaming&#8221; includes both console chips and Radeon graphics. So, the fact that Gaming overall fell so precipitously despite those &#8220;improved&#8221; Radeon sales implies both that Radeon sales are pretty titchy and that they can&apos;t have improved by all that much.<\/p>\n<p>Overall, Gaming currently represents just over 10% of AMD&apos;s revenues and falling. Indeed, Lisa Su predicted further double-digit percentage falls for the Gaming division for next quarter.<\/p>\n<div class=\"fancy-box\">\n<div class=\"fancy_box-title\">Your next machine<\/div>\n<div class=\"fancy_box_body\">\n<figure class=\"van-image-figure \" >\n<div class='image-full-width-wrapper'>\n<div class='image-widthsetter' >\n<p class=\"vanilla-image-block\" style=\"padding-top:56.25%;\"><img decoding=\"async\" id=\"xXhrEsP3nMY9e43WUFUxSC\" name=\"gaming-pc-group-shot.jpg\" caption=\"\" alt=\"Gaming PC group shot\" src=\"https:\/\/arcader.org\/wp-content\/uploads\/2024\/08\/amd-sells-1-billion-worth-of-ai-chips-and-cpu-sales-are-up-but-its-gaming-graphics-continues-to-struggle.jpg\" mos=\"\" link=\"\" align=\"\" fullscreen=\"\" width=\"\" height=\"\" attribution=\"\" endorsement=\"\" class=\"pinterest-pin-exclude\"><\/p>\n<\/div>\n<\/div><figcaption itemprop=\"caption description\" class=\"\"><span class=\"credit\" itemprop=\"copyrightHolder\">(Image credit: Future)<\/span><\/figcaption><\/figure>\n<p class=\"fancy-box__body-text\"><a data-analytics-id=\"inline-link\" href=\"https:\/\/www.pcgamer.com\/best-gaming-pc\/\" target=\"_blank\" rel=\"noopener\"><strong>Best gaming PC<\/strong><\/a>: The top pre-built machines.<br \/>\n<a data-analytics-id=\"inline-link\" href=\"https:\/\/www.pcgamer.com\/best-gaming-laptop\/\" target=\"_blank\" rel=\"noopener\"><strong>Best gaming laptop<\/strong><\/a>: Great devices for mobile gaming.<\/p>\n<\/div>\n<\/div>\n<p>Moreover, Su didn&apos;t have much to say about those gaming products during the earnings call for investors covering AMD&apos;s latest results. There were no upbeat promises of new Gaming products that would begin to turn things around. All of which makes for a mixed feeling for PC gamers.<\/p>\n<p>AMD generally is doing well and surely has plenty of resources to invest in future chips. Hooray. But it still doesn&apos;t seem to be able to turn around its struggling graphics division. Haroo.<\/p>\n<p>We really, really would love to see AMD putting more pressure on Nvidia when it comes to graphics cards. So, here&apos;s hoping AMD is fully keeping faith with its Gaming division despite these latest results.<\/p>\n<\/article>\n<p><a href=\"https:\/\/www.pcgamer.com\/hardware\/processors\/amd-sells-dollar1-billion-worth-of-ai-chips-and-cpu-sales-are-up-but-its-gaming-graphics-continues-to-struggle\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sales of AMD&apos;s new AI chips are going gangbusters. Well, relatively speaking. AMD&apos;s latest results for the second quarter of this year showed that the company flogged roughly $1 billion&apos;s worth of its Instinct MI300 AI GPUs in the quarter, up from pretty much zero for the same class of hardware a year ago. Overall, AMD&apos;s revenues were up 9% to $5.8 billion compared to the same period last year. Of course, the relative bit arrives when you compare all that with Nvidia&apos;s AI GPU sales, which came in at roughly $20 billion for the first quarter of 2024. So, AMD has done well to get a foothold in the mega-profitable AI GPU market. But it&apos;s still miles behind Nvidia. On a related note, AMD&apos;s&hellip;<\/p>\n<p class=\"excerpt-more\"><a class=\"blog-excerpt button\" href=\"https:\/\/arcader.org\/news\/amd-sells-1-billion-worth-of-ai-chips-and-cpu-sales-are-up-but-its-gaming-graphics-continues-to-struggle\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":919957,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[336],"tags":[66,10710],"class_list":["post-919956","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pc-gamer","tag-hardware","tag-processors"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AMD sells $1 billion worth of AI chips and CPU sales are up but its gaming graphics continues to struggle | Arcader News<\/title>\n<meta name=\"description\" content=\"Sales of AMD&amp;apos;s new AI chips are going gangbusters. 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