Advanced Micro Devices (AMD) reported mixed results in its gaming sector for Q1 2026, with revenues reaching $720 million, an 11% increase year-over-year but a 15% decrease sequentially. This growth was propelled by strong sales of the new Radeon 9000 series graphics cards, although challenges persisted in its semi-custom business for gaming consoles, which showed expected declines due to market maturity.
For Q2 2026, AMD anticipates total revenues to rise 9% sequentially to approximately $11.27 billion, marking a significant 46% increase from the previous year. However, the company expects gaming revenues to decrease by over 20% in the latter half of 2026, following a continuing downturn in consumer demand, attributed to rising costs of components.
AMD faces intense competition from NVIDIA and Intel, with NVIDIA’s Edge Computing sector generating $6.4 billion in Q1 2027, and Intel recently launching new gaming processors aimed at enhancing performance in handheld devices. Despite a year-to-date share price increase of 128.1%, AMD is currently rated as overvalued compared to its peers.
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