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AMD's free cash flow plunges to 4% of revenue despite record sales, raising concerns about cash use and inventory buildup.

Company Fundamentals
04 Nov 2026, 14:09 WIB
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AMD's free cash flow plunges to 4% of revenue despite record sales, raising concerns about cash use and inventory buildup.

AMD reported record revenue growth in 2026, reaching $13.37 billion in Q3, but its free cash flow margin sharply dropped to about 4%. The company increased inventory significantly to meet strong data center demand, causing cash tied up in unsold goods and receivables to rise. AMD's debt also increased due to new borrowing, though cash reserves remain higher than debt. Investors remain optimistic as AMD expects continued revenue growth, but risks include potential inventory write-downs if demand slows and no clear timeline for free cash flow recovery. The upcoming Q4 report will be critical to assess cash flow trends and inventory management.

AMD's free cash flow margin fell to 4% of revenue, providing context for readers interested in its financial health. For readers following the Technology sector, here is Pluang's market snapshot as of Nov 04, 2026 18:02 WIB: out of 150 priced US tech stocks, 114 rose and 31 fell today. Notable movers include SMCI at USD 34.22 with a 9.02% increase and CIFR at USD 7.38 with a 9.11% decline in price.

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