AMD's Free Cash Flow Could Hit $31B by 2029 — Here's Why That Matters

Advanced Micro Devices (AMD) just posted a 36% YoY revenue surge in Q3, riding the wave of data center chip demand. The real story? Analysts are projecting its free cash flow to skyrocket at a 66% annualized rate through 2029, potentially reaching nearly $31 billion.

Why the optimism? AMD just locked in a major deal with OpenAI for upcoming data center GPUs, plus Oracle is signing on for an AI chip supercluster launching in Q3 2026. CEO Lisa Su called it “a clear step up in our growth trajectory.”

Here’s the kicker — AMD’s currently trading at just 12x its 2029 FCF consensus estimate. For context, Nvidia’s sitting pretty with 50%+ profit margins on data center GPUs. AMD’s at 10%, which means there’s room to scale.

The stock’s up 88% in six months, but if these projections hit, that’s just pricing in the recent cash flow bump. Revenue is expected to hit $96 billion by 2029 at a 30% annualized growth rate.

The question isn’t whether AMD has the goods — it clearly does. It’s whether you believe the data center GPU supercycle is real and that AMD can capture its share.