AMD announced its earnings today, notching a slight beat over its Q2 projections, taking the stock up 3% in after-hours trading. AMD CEO Lisa Su also announced that the company has seen its AI engagements increase by 7x during the quarter as the companies either initiated or expanded existing Instinct Accelerator programs for AI workloads. The company also announced that its hotly-anticipated MI300A and MI300X GPUs are on track for a Q4 launch and already sampling to HPC, Cloud, and AI providers, providing the company a fresh round of products to contest Nvidia, the overwhelming leader for AI workloads.

The news initially sent AMD's stock up 8% in after-hours trading, but AMD also provided a lower-than-expected guide for the third quarter, tempering the positive news and seeing the stock drop to +3% at the time of publishing.

AMD's consumer chips raked in $998 million during the quarter, down 54% year-over-year as the chip glut, which also impacted Intel's sales during the quarter , continues. Like Intel, AMD also says that it has seen PC market conditions improve as its revenue increased 35% over the prior quarter. Much of that gain comes from increased sales of the Zen 4 Ryzen 7000 processors.

AMD's gaming segment revenue totaled $1.6 billion, down 4% on the year and 10% from the prior quarter. AMD cited lower sales of its gaming GPUs as the primary contributor to the disparity.

AMD says its data center revenue dropped 11% year-over-year to $1.3 billion as sales of its third-gen EPYC Milan cooled due to a weak market. That was partially offset by sales of the pricier fourth-gen EPYC Genoa models, so revenue for this segment grew by 2% over the prior quarter. AMD's data center group posted $147 million in operating income for the quarter, which is markedly better than Intel's data center performance this quarter, which saw its data center group losing $200 million.

AMD's earnings call takes place soon, so we'll update as we learn more.