AMD's record quarter: Data center business doubles, while gaming craters

AMD reported a record $13.4 billion quarter, with a 45% year-over-year increase, driven by a 97% year-over-year growth in its data center business. The data center segment reached a record $8.5 billion, with the EPYC line of enterprise server CPUs and the launch of the Instinct MI450 series GPUs contributing to the growth. The Client business, which includes desktop Ryzen processors, posted $2.95 billion in revenue, up 7% year over year. However, gaming revenue fell 40% to $773 million due to lower semi-custom and graphics revenue. The company's operating margins in the data center business expanded from 25% to 34%, with operating income surging 168% to $2.88 billion. Embedded segment revenue was $1.1 billion, up 29%, driven by gains in aerospace, defense, automotive, communications, and industrial end markets.