Chipmaker $Advanced Micro Devices (AMD.US)$ reported Tuesday after the market close with second-quarter earnings and revenue that increased year-over-year amid strength in data center revenue and fairly positive performance in the client business. The guidance for the running quarter also came in ahead of expectations. Reacting to the results, the semiconductor stock was up 4.8%in after-hours trading.

AMD Q2 Earnings Takeaways:: Santa Clara, California-based AMD belied pessimism surrounding a possible cutback in orders from $Microsoft (MSFT.US)$ flagged by analysts and the formidable threat posed by artificial intelligence frontrunner $NVIDIA (NVDA.US)$ Corp. (NASDAQ:NVDA). Here's how the headline numbers compare to Street estimates and comparable metrics from the prior-year periods.

* according to Benzinga Pro data

Rival $Intel (INTC.US)$, which typically reports ahead of AMD, is scheduled to announce its quarterly results on Thursday. Intel is expected to report a 23% year-over-year drop in earnings per share and flattish revenue.

Commenting on AMD's results, CEO Lisa Su said: "We delivered strong revenue and earnings growth in the second quarter driven by record Data Center segment revenue.

"Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, EPYC and Ryzen processors. The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business."

Ahead of the results, Rosenblatt's Hans Mosesmann called for an in-line second-quarter print and a slight upside to third-quarter guidance, underpinned by AI momentum, share gains in general purpose x86 CPUs, seasonal PC/gaming and stabilizing embedded Xilinx market segment.

AMD's Businesses – How They Did In Q1: The company clocked record data center revenues and its client business saw both sequential and year-over-year revenue increases. It attributed the data center strength to a steep ramp of AMD Instinct GPU shipments, and strong growth in 4th Gen AMD EPYC CPU sales.

Strong Ryzen processors propped up the client business. The client's business is exposed to the PC market, which grew at 3% year-over-year in the second quarter, according to IDC. China was a sore spot and the quarter's growth benefited from easier comparisons, it added.

*may not add up to 100% due to the rounding off.

AMD Q3 Outlook: For the third quarter, AMD expects revenue of $6.7 billion plus or minus $300 million against Street estimates of $6.61 billion. It guided to third-quarter non-GAAP gross margin of about 53.5%.

The Street models full-year earnings of $3.49 per share and revenue of $25.57 billion, marking increases of roughly 32% and 13%, respectively.

The focus now shifts to the earnings call hosted by AMD's management at 5 p.m. EDT as the team weighs in on the outlook for the MI300 AI accelerators.

AMD Stock: The chipmaker's stock has been a laggard, having fallen over 6% year-to-date. The $iShares Semiconductor ETF (SOXX.US)$ and the $SPDR S&P 500 ETF (SPY.US)$ have rallied over 15% and 14.7%, respectively, during the same period.