AI has become very power-hungry, requiring huge amounts of memory. As a result, the market is under pressure, with prices four to five times higher than usual, with very real repercussions on the market. AMD takes the lead and announces that the second quarter will see a drop in demand in the PC and gaming sectors! Is this a way of preparing investors for the upcoming second-quarter results?
AMD is already anticipating a drop in demand for PCs and gaming in Q2 2026!
Solid first-quarter figures :
Even so, AMD had an encouraging first quarter in 2026, with sales in its Client & Gaming segment up 23% year-on-year (vs. Q1 2025) to $3.94 billion. However, compared with the previous quarter, this figure was down by 9%.
The company’s client segment was mainly driven by strong momentum in the Ryzen range, thanks in particular to the Ryzen 9000X3D. As we know, the 9800X3D is selling like hotcakes, and the same is true of the 7800X3D, which is still enjoying good sales levels. On the mobile side, Ryzen AI 400s were a solid engine in the notebook sector too.
Price hikes galore are slowing down the sector:
Unfortunately, with the AI industry gluttonous for memory, prices are skyrocketing. This is holding back customers from upgrading their PCs, or even buying new machines. As we have already seen with Amazon’s figures, CPU sales are already in freefall.
The situation is not looking too good for consoles either, as we learn that Sony and Microsoft’s XBox division have already raised the price of their respective machines.
A sharp decline in AMD’s gaming segment is expected:
As a result, Lisa Su, the company’s current CEO, indicates that the decline in the Gaming segment will continue to accentuate in the second quarter of the year. If in Q1 2026 it was down 15% on Q4 2025, the decline could be greater in the second quarter.
In contrast, these gains are partly offset by the Data Center sector, which posted a 7.3% increase on Q4 2025. Sales reached $5.77 billion.
