advanced micro devices inc shares surged in the extended session tuesday after the chip maker’s results topped wall street estimates amd amd shares rallied more than 4 after hours following a 29 gain to close the regular session at 11766 the company reported secondquarter net income of 27 million or 2 cents a share compared with 447 million or 27 cents a share in the yearago period adjusting for stockbased compensation and other onetime items amd reported earnings of 58 cents a share compared with 105 a share last year secondquarter revenue fell to 536 billion from 655 billion a year ago and gross margins fell to 50 from 54 a year ago analysts surveyed by factset expect adjusted secondquarter earnings of 57 cents a share on revenue of 532 billion the company had forecast 5 billion to 56 billion in revenue and secondquarter gross margins of about 50 read will ai do to nvidia what the dotcom boom did to sun microsystems analysts compare current hype to past ones last quarter amd highlighted its ai and datacenter products for the second half of the year but admitted it will take a rebound in the pc market to improve gross margins also see is amd ceding ground to intel wall street will soon find out datacenter revenue declined 11 to 13 billion while the street expected 137 billion pc sales fell 54 to 998 million while analysts expected 8433 million gaming sales declined 4 to 16 billion compared with a street estimate of 16 billion and embedded sales rose 16 to 15 billion while the street forecast 149 billion more nvidia gets more good news from big tech even as ai spending ‘may not lift all boats’ “our ai engagements increased by more than seven times in the quarter as multiple customers initiated or expanded programs supporting future deployments of instinct accelerators at scale” said lisa su amd’s chair and chief executive in a statement “we made strong progress meeting key hardware and software milestones to address the growing customer pull for our data center ai solutions and are on track to launch and ramp production of mi300 accelerators in the fourth quarter” “looking to the third quarter we expect our data center and client segment revenues to each grow by a doubledigit percentage sequentially driven by increasing demand for our epyc and ryzen processors partially offset by gaming and embedded segment declines” said jean hu amd’s chief financial officer in a statement amd forecast revenue for the third quarter of 54 billion to 6 billion on adjusted gross margins of about 51 analysts are forecasting adjusted thirdquarter earnings of 73 cents a share from amd on revenue of 582 billion that would mark a 46 increase on the top line meanwhile datacenter sales are forecast to rise 73 to 173 billion from a year ago and pc sales are expected to rise 26 to 105 billion year to date amd shares have gained 816 while the phlx semiconductor index sox has surged 524 the sp 500 index spx has risen 192 and the techheavy nasdaq composite comp has gained 365