During AMD's Q1 2026 earnings call, CEO Lisa Su warned that global memory supply will tighten in the second half of 2026, increasing cost pressure on consumer products. Due to declining demand in client and gaming segments, AMD is adjusting its business plans. Executive Vice President and CFO Jean Hu stated that due to rising memory and component costs, gaming business revenue is expected to decline by more than 20% quarter-over-quarter in the second half, aligning with industry assessments. The memory supply crunch stems primarily from surging AI demand, with data centers driving up HBM requirements, leading to tighter consumer memory supply and higher prices. Console price hikes have caused sales volumes to drop, while semi-custom chip orders have decreased, delivering a double blow to AMD's gaming business. Unlike the consumer segment, AMD expects data center CPU revenue to grow 70% year-over-year in Q2, driven primarily by AI computing demand.