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Lisa Su: AMD free cash flow reached record $2.6B (25% of revenue), more than tripling YoY; inventory stable at $8B despite 38% revenue growth, indicating excellent supply chain execution
Lisa Su· AMD· AI· 2026-05-06· about AMD (AMD)
“During the quarter, we generated $3 billion in cash from continuing operations and a record $2.6 billion in free cash flow or 25% of revenue... Inventory was roughly flat at $8 billion.”
Why it matters
Record FCF despite 70%+ forecasted CPU growth indicates AMD is managing working capital efficiently and not building excess inventory ahead of demand. Flat inventory with 38% revenue growth is unusual and suggests either aggressive demand forecasting or reduced supply chain redundancy.
Investment implication
AMD's strong FCF generation enables self-funded capex expansion, reducing reliance on external financing. However, flat inventory with accelerating growth suggests supply chain is operating at higher utilization, reducing buffer for supply disruptions.