Advanced Micro Devices’ AMD $AMD Gaming revenues jumped 50% year over year to $843 million in the fourth quarter due to higher semi-custom sales. Gaming GPU revenues increased due to strong demand for the company’s latest Radeon RX 9000 series GPUs. However, revenues on a sequential basis plunged 35% due to lower semi customer sales. AMD now expects semi-custom SoC annual revenues to decline by a significant double-digit percentage in 2026, thereby hurting gaming revenues.
AMD expects first-quarter 2026 total revenues to decline 5% sequentially due to a seasonal decline in the Client and Gaming and Embedded segments. Year over year, total revenues are expected to jump 32%, driven by strong growth in the Data Center and Client and Gaming segments and modest growth in the Embedded segment. The Zacks Consensus Estimate for first-quarter 2026 revenues is pegged at $9.84 billion, suggesting 32.3% growth from the figure reported in the year-ago quarter. The consensus mark for 2026 revenues is pegged at $45.37 billion, indicating 31% growth over 2025.
AMD’s expanding portfolio with the launch of the new Ryzen 7 9850X3D, the fastest gaming processor, powered by the Zen 5 architecture and AMD 3D V-Cache technology. Launch of FSR “Redstone” for AMD Radeon graphics cards is the company’s most advanced AI-powered upscaling technology, delivering higher image quality and smoother frame rates for gamers. Meanwhile, Valve’s launch of AMD-powered Steam Machine bodes well for the company’s gaming business in 2026. Moreover, AMD’s gaming business is expected to improve in 2027 with the much-anticipated launch of