Capital allocation was active in FY2024: common stock repurchases of $1.59B, acquisitions net -$565MM, and no dividends were paid. Free cash flow for FY2024 was $2.40B, with net cash provided by operations at $3.04B. (Source: Monexa AI.

Leverage remains low: reported net debt is -$1.36B (net cash) and total debt $2.32B, supporting flexibility for buybacks, tuck-in deals or R&D investment. (Source: Monexa AI.

Financial performance, cash flow and capital allocation#

FY2024 revenue totaled $25.79B — a +13.69% increase from FY2023 — driven by margin expansion that lifted gross profit to $11.28B and gross margin to 43.73% (up from 37.88% in 2023). Operating income improved to $2.22B and net income to $1.64B. (Source: Monexa AI.

Cash-flow dynamics improved materially: FY2024 free cash flow was $2.40B, a +114.54% change on the period metric, after capital expenditure of -$636MM and acquisition outlays -$565MM. Common-stock repurchases consumed a meaningful portion of cash generation. (Source: Monexa AI.

The balance sheet shows cash & equivalents $3.68B and cash + short-term investments $5.13B, with total assets $69.23B and total liabilities $11.66B, underpinning a strong current ratio and low leverage profile. (Source: Monexa AI.

Fiscal Year	Revenue	Gross Profit	Operating Income	Net Income
2024	$25.79B	$11.28B	$2.22B	$1.64B
2023	$22.68B	$8.59B	$0.63B	$0.85B
2022	$23.60B	$8.50B	$1.61B	$1.32B

(Source: Monexa AI

Analyst estimates and forward valuation#

Consensus estimates point to continued top-line and EPS acceleration: the dataset shows a revenue CAGR (future) of +23.64% and an EPS CAGR of +33.38% across the forecast horizon, underpinning elevated forward multiples in consensus models. (Source: Monexa AI.

Market-implied multiples compress across the forecast window — forward P/E estimates are 51.37x (2024), 42.75x (2025) and 28.54x (2026) — indicating that analysts model substantial EPS expansion rather than immediate margin improvement alone. (Source: Monexa AI.

Analyst revenue and EPS point estimates (selected years) are summarized below; note the progressive scale-up reflected in both revenue and EPS counts of analyst coverage: (Source: Monexa AI.

Year	Est. Revenue	Est. EPS	Analysts (Rev/EPS)
2024	$25.67B	3.31	29 / 31
2025	$32.88B	3.91	31 / 28
2026	$39.65B	6.00	35 / 26
2027	$45.90B	7.41	23 / 11
2028	$60.00B	10.49	11 / 5

(Source: Monexa AI

Why is AMD commanding a high multiple despite current earnings? (featured snippet)#

The market is pricing anticipated earnings acceleration tied to secular AI and data-center demand, plus sustained product investment; consensus models show an implied EPS CAGR of +33.38%, which supports elevated forward multiples even while near-term reported earnings remain moderate. (Source: Monexa AI.

Supporting detail: consensus forward P/E compression from 51.37x to 28.54x by 2026 assumes EPS growth, not a valuation multiple expansion; the market is effectively front-loading future profits into today’s price. (Source: Monexa AI.

Supporting detail: R&D intensity is high — R&D expense was $6.46B in FY2024 and R&D-to-revenue TTM is 23.55%, signaling that a sizeable portion of cash flow is being reinvested into product cycles that underpin the revenue and EPS trajectory baked into forward estimates. (Source: Monexa AI.

Competitive landscape and strategic effectiveness#

AMD operates at the intersection of CPU, GPU and accelerator markets where competitive dynamics remain intense. The company’s investment profile — notably R&D at $6.46B and elevated intangible assets ($43.77B of goodwill & intangibles in FY2024) — reflects both product development and past M&A, which shape reported returns on capital. (Source: Monexa AI.

Capital allocation shows a mix of buybacks (-$1.59B), acquisitions (-$565MM) and no dividend payouts, consistent with a growth-and-scale emphasis; repurchases represented about -66.25% of FY2024 free cash flow, highlighting management’s preference for share reduction while funding R&D and selective M&A. (Calculation and source: Monexa AI.

From a strategic-effectiveness angle, R&D as ~23.55% of revenue is high relative to many semiconductor peers (supporting product cycles), but investors should monitor the cadence of data-center wins and gross-margin retention as the principal proof points that R&D is converting to durable, higher-margin revenue. (Source: Monexa AI; sector context: McKinsey - The state of AI.

Key takeaways and what this means for investors#

AMD shows a classic growth/valuation divergence: strong recent profit acceleration (net income +92.15%) and improving free cash flow coexist with elevated forward multiples that price in significant future EPS upside. (Source: Monexa AI.

Growth vs valuation: FY2024 revenue $25.79B (+13.69%) and net income $1.64B (+92.15%) underpin analyst EPS momentum expectations. (Source: Monexa AI.
Cash & capital allocation: Free cash flow $2.40B after $1.59B in buybacks (repurchases ≈ -66.25% of FCF). (Source: Monexa AI.
Investment intensity: R&D-to-revenue TTM 23.55%, intangible assets $43.77B — capital is being directed at long-cycle product advantage. (Source: Monexa AI.

Investors and analysts should track three objective indicators that will clarify execution: (1) data-center and AI-related revenue cadence and market-share disclosures, (2) gross-margin trajectory by product line, and (3) free-cash-flow conversion after buybacks and M&A. These metrics will determine whether forward multiples are validated by realized EPS growth rather than multiple expansion. (Source: Monexa AI.