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AMD Gaming segment revenue fell 59% from Q2 2023 on weakness in semi-custom chips

AMD's semi-custom chips help power hardware from PlayStation, Xbox, and Valve.

Ozzie Mejia

July 30, 2024 2:34 PM

AMD

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AMD reported better-than-expected earnings for Q2 2024. However, while the company's earnings are largely on the back of strong GPU shipments and CPU sales, it's worth noting that not all seems to be well with the gaming sector. AMD's gaming segment revenue is down $648 million, 59 percent year-over-year, mainly due to a decrease in semi-custom revenue.

As noted in Tuesday's Q2 2024 earnings report, AMD's gaming segment revenue falling as much as it has is noteworthy because of the gaming hardware that's tied to AMD's semi-custom chips. AMD has supplied its semi-custom chips to PlayStation, Xbox, and Valve, which points to a correlation with slumping hardware sales. Earlier today, Microsoft announced as part of its Q4 2024 earnings results that Xbox hardware sales fell 42 percent year-over-year.

AMD continues to put more of its efforts toward developing AI technology. New AMD hardware, such as the upcoming AMD Instinct MI325X accelerator and AMD Ryzen AI 300 Series processors, will feature an increased focus on AI tech. With that said, technology aimed at the average consumer and game enthusiast is still on the agenda, including the new AMD Ryzen 9000 Series processors built on the Zen 5 architecture.

AMD (NASDAQ: AMD) shares fell by $1.31/share at the end of the trading day on Tuesday, July 30. The stock has since rallied, finishing up by $9-10/share in after-hours trading.

We'll continue to monitor big financial stories from tech companies like AMD here at Shacknews. Keep it here for the latest updates.

Ozzie Mejia

Senior Editor

Ozzie has been playing video games since picking up his first NES controller at age 5. He has been into games ever since, only briefly stepping away during his college years. But he was pulled back in after spending years in QA circles for both THQ and Activision, mostly spending time helping to push forward the Guitar Hero series at its peak. Ozzie has become a big fan of platformers, puzzle games, shooters, and RPGs, just to name a few genres, but he’s also a huge sucker for anything with a good, compelling narrative behind it. Because what are video games if you can't enjoy a good story with a fresh Cherry Coke?