Advanced Micro Devices Inc. reported record second-quarter revenue of $7.69 billion, topping the $7.43 billion average analyst estimate as demand for server and PC processors remained strong. The figure represents roughly 32% growth from a year earlier. Adjusted earnings were 48 cents a share, fractionally below the 49-cent consensus, while GAAP earnings reached 54 cents, translating into net income of $872 million. Gross margin narrowed to 40% on a GAAP basis and 43% on a non-GAAP basis, down 10 percentage points year on year. Profitability was pressured by an $800 million inventory-related charge stemming from U.S. export controls on advanced chips bound for China, leading to a $134 million operating loss. AMD increased research and development spending to $1.89 billion and invested $282 million in capital expenditures as it accelerates production of its Instinct MI350 AI accelerators. For the current quarter, the chipmaker projected revenue between $8.4 billion and $9 billion, with the midpoint of $8.7 billion surpassing Wall Street’s $8.37 billion forecast. Management also forecast a non-GAAP gross margin of about 54%. Shares rose roughly 2% in post-market trading.