AMD's CEO Dr. Lisa Su expects AMD to continuing growing its PC business in 2026, despite a crunch of component pricing that the company believes will shrink the PC market overall. In a response on memory pricing in the client segment, Su said, "Our focus areas are enterprise... and just continuing to grow at the premium, you know, higher-end of the market."
Memory prices (and more recently SSD prices) have presented a significant hurdle for building a new PC, and despite prices starting to level-off, there's no sign of prices dropping any time soon. Given these pressures, AMD says it expects the PC market to shrink overall in 2026.
"Even in that environment, with the PC market down, we believe we can grow our PC business," said Su. "I think the PC market is an important market. Based on everything we're seeing today, we're probably seeing the PC [Total Addressable Market] down a bit."
Earlier in the year, AMD executives hinted at relaunching older Zen 3-based CPUs to combat memory shortages, allowing builders with existing DDR4 to upgrade. Su's comments echo what another AMD executive shared earlier in the year, however, with AMD's Rahul Tikoo telling Tom's Hardware, "We don’t see an issue there other than, you know, tightness leads to higher prices, eventually... I'm not seeing any impact to our business this year."
Memory prices continue to be orders of magnitude higher than they were just a few months ago. In our tracking of RAM pricing, we've seen many kits quadruple in price compared to lowest-ever prices, and many kits at least triple in price compared to September 2025.
AMD's enterprise business now represents its largest business segment, despite more growth year-over-year in its client and gaming business. During the call, Su also hinted at a next-gen Xbox launching in 2027.
AMD Q4 2025 and Full Year Financial Results
Image 1 of 6 (Image credit: AMD) (Image credit: AMD) (Image credit: AMD) (Image credit: AMD) (Image credit: AMD) (Image credit: AMD)
Overall, AMD brought in $10.3 billion in revenue for the quarter, up 34% year-over-year, bringing revenue for the full year up to $34.6 billion. The results include $440 million in inventory of Instinct MI308 accelerators, approximately $360 million worth of which was released from export control. For the fourth quarter, AMD says its total MI308 revenue for sales to China was approximately $390 million.
Stay On the Cutting Edge: Get the Tom's Hardware Newsletter Get Tom's Hardware's best news and in-depth reviews, straight to your inbox. Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors
... continue reading