AMD stock rallied nearly 4% to $483.90 and rose another 5% after hours after a clean Q3 beat and aggressive forward targets. Non-GAAP operating income rose 75% to $3.9B, but free cash flow was only $554M, while inventory climbed about $3B in one quarter to $11.5B. The article calls this mostly timing, since Q4 revenue is guided to about $17B, but the CFO expects to keep investing in inventory and capacity through 2027. Management targets revenue growth above 80%, implying more than $90B in 2027 against consensus 2026 estimates of roughly $50B-$51B, while non-GAAP gross margin is guided to about 55%. Customer warrants created a $1.1B non-cash charge, and the article concludes that demand is verified but how much the 2027 ramp relies on AMD funding its customers is not.
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