AMD guided fourth-quarter revenue to about $17.0 billion, +66% YoY. Management expects 2027 revenue to grow by more than 80%, led by Data Centre AI. Helios, a full AI server rack built around AMD's chips, began shipping for revenue in Q3.
Yet free cash flow fell to $554 million in Q3, or 4% of revenue, as AMD built $3.0 billion of inventory for the ramp.
The share price fell 37.7% from its 6 October closing high to the 5 November close. It has since rebounded 36.7% to $552.90.
So can the Helios ramp turn into cash? In today's note, we cover the quarter, the guidance, the cash flow squeeze, our Multi-model Signal, and a 12-month price target.
The sections below are only viewable to Multi-model Signals & Research subscribers. You can unlock today with a 1-month free trial.
DISCLAIMER: This newsletter is intended for educational purposes only. Any information or analysis in this note does not constitute an offer to sell or a solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice, nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.
