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Lisa Su: Memory and component costs driving second half demand softness; gaming revenue expected to decline >20% H2 vs H1 2026 due to higher memory/component costs
Lisa Su· AMD· AI· 2026-05-06· about AMD (AMD)
“We now expect second half gaming revenue to decline more than 20% compared to the first half... we are planning for second half PC shipments to be lower due to higher memory and component costs.”
Why it matters
Memory price inflation is creating demand destruction in consumer and gaming segments. While enterprise AI spending is resilient to cost increases, consumer demand is price-sensitive, indicating potential margin pressure for memory vendors if they fail to ease prices H2 2026.
Investment implication
DRAM and NAND suppliers (Samsung, SK Hynix, Micron, Kioxia) may face volume softness in consumer channels in H2 2026, but will see offsetting strength in datacenter from AI deployments. Margin dynamics are mixed: datacenter ASPs may soften, but AI workloads require higher-capacity modules.