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Artificial Intelligence (AI) has dominated the news so much that we almost forget how the gaming industry influenced major chipmakers like Nvidia (NVDA) and Advanced Micro Devices (AMD). The GPUs that are propelling the AI industry to new heights were first developed to render graphics for video games and 3D applications! While the focus has recently changed for the chipmakers, the gaming industry still depends on them.
At one point in 2023, the gaming segment brought in over a quarter of AMD’s revenue. But circumstances have since changed for the worse, and the same segment now only produces 10% of the revenue. This is just how the cyclical gaming industry works and is not necessarily AMD’s fault. The company continues to innovate, and the recent news coming out of the gaming arenas proves that. Valve’s new Steam Machine will be powered by AMD’s RDNA 3 semi-custom GPU and Zen 4 CPU. It will come out at some point next year but the adoption shows how AMD’s chiplet design is maturing.
