Advanced Micro Devices Inc.’s upbeat revenue outlook wasn’t enough to send the stock higher in Tuesday’s extended session — suggesting the explosive rally over the past few months might have been overextended,

The AI data-center market has been moving toward “full stack” rack-scale solutions led by Nvidia. In March, AMD closed its acquisition of ZT Systems, giving the company more expertise to design rack-scale AI servers incorporating chips, networking, and software in a larger end-to-end system offering in the future.

Advanced Micro Devices is set to report second-quarter results after the closing bell on Tuesday, with traders anticipating a sizable move from the chipmaker's stock.