GamingThin moat

Advanced Micro Devices (AMD) — moat facet

The line that follows the console cycle: 28.8% of AMD in 2022, 6.8% in the June 2026 quarter.

Gaming is the line that shrank most while the rest of AMD grew. It brought in $6,805 million in 2022, $6,212 million in 2023, $2,595 million in 2024 and $3,910 million in 2025.12

Gaming revenue ($bn)$6.81bn2022$6.21bn2023$2.60bn2024$3.91bn2025$1.50bnH1 2026AMD Forms 10-K FY2023 and FY2025 and Q2 2026 10-Q
Down 58% in one year, up 51% the next, and falling again in 2026.

What is inside the line is two businesses: semi-custom chips designed for the console makers, and Radeon graphics cards for PCs.3 The semi-custom part is the larger, and it concentrates the line on very few buyers. In 2023 one customer of the Client and Gaming segment accounted for 18% of AMD's total revenue; by 2024 no customer reached 10%.4

The history the filings show is the console cycle. Gaming revenue fell 9% in 2023, primarily on lower semi-custom revenue, while operating income edged up from $953 million to $971 million on product mix.5 It then fell 58.2% in 2024.6 In 2025 it recovered 51%, on higher semi-custom revenue and strong demand for Radeon GPUs.7

It is paid in two ways. Semi-custom revenue is paid per chip on designs AMD engineers for a named customer, and the page on custom work shows that such work fell from 25% of AMD's revenue in 2023 to 9% in 2025.8 Radeon cards are sold through the PC channel against Nvidia's GeForce. Gaming's profit is no longer disclosed on its own; it is reported inside the Client and Gaming segment.9

The first half of 2026 turned down again. Gaming revenue fell 15% in the first half, primarily on lower semi-custom revenue partly offset by higher Radeon sales, and to $779 million in the June quarter, 30.6% below the $1,122 million a year earlier.1011 The combined Client and Gaming segment earned $582 million in the quarter, against $767 million, on higher operating expenses.12

The outlook is set by the next generation of consoles, whose timing belongs to the console makers.

This is a thin moat: a design position won once a generation and a graphics business that is second in its market. The figure to follow is Gaming's share of AMD's revenue, 28.8% in 2022, 11.3% in 2025 and 6.8% in the June 2026 quarter.13 Whether it rises again when the next consoles ship is the test of whether AMD keeps the design wins that built it.

Moat trajectory: Narrowing

Revenue down 15% in the first half of 2026 on lower semi-custom sales, and 6.8% of AMD in the June quarter.

The number that tests this moat
Moat Explorer calc
Gaming share of revenue, latest quarter
6.8% in Q2 2026, from 28.8% in 2022

A rise when the next consoles ship would show AMD kept the design wins that built the line.

How it's calculated: 779 / 11,536 for Q2 2026; 6,805 / 23,601 for 2022.
Source: AMD Form 10-Q, Q2 2026 (Moat Explorer calc) ↗
References
  1. ReportedIt brought in $6,805 million in 2022, $6,212 million in 2023, $2,595 million in 2024 and $3,910 million in 2025.
    AMD Form 10-K FY2023 - segment revenue 2022 Data Center $6,043M, Client $6,201M, Gaming $6,805M, Embedded $4,552M of $23,601M; 2023 drivers: Data Center +7% on Instinct and 4th Gen EPYC, operating income $1.8bn to $1.3bn on mix and R&D; Client -25% on a 16% lower ASP and 12% fewer units, operating loss $46M against $1.2bn; Gaming -9% on lower semi-custom revenue, operating income $953M to $971M; Embedded +17% on a full year of Xilinx (acquired 14 Feb 2022), operating income $2,252M to $2,628M — FY2022-FY2023 · publ. January 2024 · source ↗
  2. ReportedIt brought in $6,805 million in 2022, $6,212 million in 2023, $2,595 million in 2024 and $3,910 million in 2025.
    AMD Form 10-K FY2025 - segment note and MD&A: revenue 2023-2025 Data Center $6,496M/$12,579M/$16,635M, Client $4,651M/$7,054M/$10,640M, Gaming $6,212M/$2,595M/$3,910M, Embedded $5,321M/$3,557M/$3,454M of $22,680M/$25,785M/$34,639M; operating income Data Center $1,267M/$3,482M/$3,603M, Client and Gaming $925M/$1,187M/$2,855M, Embedded $2,628M/$1,421M/$1,243M, All Other ($4,419M)/($4,190M)/($4,007M) incl. $2.3bn amortization in 2025; Client and Gaming combined into one reportable segment from Q1 2025; 2025 drivers: Data Center +32% on EPYC and Instinct demand, ~$440M MI308 charges; Client +51% on 31% more units and a 15% higher ASP; Gaming +51% on semi-custom and Radeon; Embedded -3% as certain end market demand remained mixed; segment product descriptions — FY2023-FY2025 · publ. February 2026 · source ↗
  3. ReportedWhat is inside the line is two businesses: semi-custom chips designed for the console makers, and Radeon graphics cards for PCs.
    AMD Form 10-K FY2025 - segment note and MD&A: revenue 2023-2025 Data Center $6,496M/$12,579M/$16,635M, Client $4,651M/$7,054M/$10,640M, Gaming $6,212M/$2,595M/$3,910M, Embedded $5,321M/$3,557M/$3,454M of $22,680M/$25,785M/$34,639M; operating income Data Center $1,267M/$3,482M/$3,603M, Client and Gaming $925M/$1,187M/$2,855M, Embedded $2,628M/$1,421M/$1,243M, All Other ($4,419M)/($4,190M)/($4,007M) incl. $2.3bn amortization in 2025; Client and Gaming combined into one reportable segment from Q1 2025; 2025 drivers: Data Center +32% on EPYC and Instinct demand, ~$440M MI308 charges; Client +51% on 31% more units and a 15% higher ASP; Gaming +51% on semi-custom and Radeon; Embedded -3% as certain end market demand remained mixed; segment product descriptions — FY2023-FY2025 · publ. February 2026 · source ↗
  4. ReportedIn 2023 one customer of the Client and Gaming segment accounted for 18% of AMD's total revenue; by 2024 no customer reached 10%.
    AMD Form 10-K FY2025 - customer concentration: one Client and Gaming segment customer 18% of revenue in 2023, none above 10% in 2024 or 2025; custom products and development services ~25%, 8% and 9% of revenue in 2023, 2024 and 2025 — FY2023-FY2025 · publ. February 2026 · source ↗
  5. ReportedGaming revenue fell 9% in 2023, primarily on lower semi-custom revenue, while operating income edged up from $953 million to $971 million on product mix.
    AMD Form 10-K FY2023 - segment revenue 2022 Data Center $6,043M, Client $6,201M, Gaming $6,805M, Embedded $4,552M of $23,601M; 2023 drivers: Data Center +7% on Instinct and 4th Gen EPYC, operating income $1.8bn to $1.3bn on mix and R&D; Client -25% on a 16% lower ASP and 12% fewer units, operating loss $46M against $1.2bn; Gaming -9% on lower semi-custom revenue, operating income $953M to $971M; Embedded +17% on a full year of Xilinx (acquired 14 Feb 2022), operating income $2,252M to $2,628M — FY2022-FY2023 · publ. January 2024 · source ↗
  6. Moat Explorer calcIt then fell 58.2% in 2024.
    Moat Explorer calculation from AMD's Forms 10-K FY2023 and FY2025 and the Q2 2026 10-Q: segment shares of revenue, operating margins and growth rates — 2022 to Q2 2026 · publ. 2026-09-23 · source ↗
  7. ReportedIn 2025 it recovered 51%, on higher semi-custom revenue and strong demand for Radeon GPUs.
    AMD Form 10-K FY2025 - segment note and MD&A: revenue 2023-2025 Data Center $6,496M/$12,579M/$16,635M, Client $4,651M/$7,054M/$10,640M, Gaming $6,212M/$2,595M/$3,910M, Embedded $5,321M/$3,557M/$3,454M of $22,680M/$25,785M/$34,639M; operating income Data Center $1,267M/$3,482M/$3,603M, Client and Gaming $925M/$1,187M/$2,855M, Embedded $2,628M/$1,421M/$1,243M, All Other ($4,419M)/($4,190M)/($4,007M) incl. $2.3bn amortization in 2025; Client and Gaming combined into one reportable segment from Q1 2025; 2025 drivers: Data Center +32% on EPYC and Instinct demand, ~$440M MI308 charges; Client +51% on 31% more units and a 15% higher ASP; Gaming +51% on semi-custom and Radeon; Embedded -3% as certain end market demand remained mixed; segment product descriptions — FY2023-FY2025 · publ. February 2026 · source ↗
  8. ReportedSemi-custom revenue is paid per chip on designs AMD engineers for a named customer, and the page on custom work shows that such work fell from 25% of AMD's revenue in 2023 to 9% in 2025.
    AMD Form 10-K FY2025 - customer concentration: one Client and Gaming segment customer 18% of revenue in 2023, none above 10% in 2024 or 2025; custom products and development services ~25%, 8% and 9% of revenue in 2023, 2024 and 2025 — FY2023-FY2025 · publ. February 2026 · source ↗
  9. ReportedGaming's profit is no longer disclosed on its own; it is reported inside the Client and Gaming segment.
    AMD Form 10-K FY2025 - segment note and MD&A: revenue 2023-2025 Data Center $6,496M/$12,579M/$16,635M, Client $4,651M/$7,054M/$10,640M, Gaming $6,212M/$2,595M/$3,910M, Embedded $5,321M/$3,557M/$3,454M of $22,680M/$25,785M/$34,639M; operating income Data Center $1,267M/$3,482M/$3,603M, Client and Gaming $925M/$1,187M/$2,855M, Embedded $2,628M/$1,421M/$1,243M, All Other ($4,419M)/($4,190M)/($4,007M) incl. $2.3bn amortization in 2025; Client and Gaming combined into one reportable segment from Q1 2025; 2025 drivers: Data Center +32% on EPYC and Instinct demand, ~$440M MI308 charges; Client +51% on 31% more units and a 15% higher ASP; Gaming +51% on semi-custom and Radeon; Embedded -3% as certain end market demand remained mixed; segment product descriptions — FY2023-FY2025 · publ. February 2026 · source ↗
  10. ReportedGaming revenue fell 15% in the first half, primarily on lower semi-custom revenue partly offset by higher Radeon sales, and to $779 million in the June quarter, 30.6% below the $1,122 million a year earlier.
    AMD Form 10-Q, quarter to 27 June 2026 - Data Center $6.7bn (+107%), operating income $2.1bn against a $155M loss, six months $12.5bn (+81%); Client $3.1bn (+23%, units +34%, ASP -6%), six months $5.9bn (+24%, units +29%, ASP -3%), driven by Ryzen mobile; Gaming $779M, six months -15% on lower semi-custom revenue partly offset by Radeon; Client and Gaming operating income $582M against $767M; Embedded $977M (+19%), six months $1.9bn (+12%), operating income $386M against $275M, demand strengthened across end markets; total revenue $11,536M — Q2 2026 · publ. August 2026 · source ↗
  11. Moat Explorer calcGaming revenue fell 15% in the first half, primarily on lower semi-custom revenue partly offset by higher Radeon sales, and to $779 million in the June quarter, 30.6% below the $1,122 million a year earlier.
    Moat Explorer calculation from AMD's Forms 10-K FY2023 and FY2025 and the Q2 2026 10-Q: segment shares of revenue, operating margins and growth rates — 2022 to Q2 2026 · publ. 2026-09-23 · source ↗
  12. ReportedThe combined Client and Gaming segment earned $582 million in the quarter, against $767 million, on higher operating expenses.
    AMD Form 10-Q, quarter to 27 June 2026 - Data Center $6.7bn (+107%), operating income $2.1bn against a $155M loss, six months $12.5bn (+81%); Client $3.1bn (+23%, units +34%, ASP -6%), six months $5.9bn (+24%, units +29%, ASP -3%), driven by Ryzen mobile; Gaming $779M, six months -15% on lower semi-custom revenue partly offset by Radeon; Client and Gaming operating income $582M against $767M; Embedded $977M (+19%), six months $1.9bn (+12%), operating income $386M against $275M, demand strengthened across end markets; total revenue $11,536M — Q2 2026 · publ. August 2026 · source ↗
  13. Moat Explorer calcThe figure to follow is Gaming's share of AMD's revenue, 28.8% in 2022, 11.3% in 2025 and 6.8% in the June 2026 quarter.
    Moat Explorer calculation from AMD's Forms 10-K FY2023 and FY2025 and the Q2 2026 10-Q: segment shares of revenue, operating margins and growth rates — 2022 to Q2 2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026