AMD Warns H2 Gaming Revenue to Drop Over 20% Despite AI Strength

AMD flagged a sharp slowdown in its gaming segment, guiding for second-half 2026 revenue more than 20% below first-half levels due to rising component costs and intensifying competition. The warning follows earlier market focus on Cathie Wood trimming AMD holdings in favor of Nvidia and ongoing debates over which AI stock offers better value. Despite the gaming pressure, AMD's overall outlook stays robust with consensus projecting 46% revenue growth to $11.27 billion in Q2, supported by AI-driven data center momentum. Shares have already surged 128% year-to-date.