$Advanced Micro Devices(AMD)$ AMD's GAAP income is drastically lower than its current net cash inflows due to high amortization of acquisition-related intangibles. That is mostly from the amortization of differed expenses from the Xilinx acquisition 2.5 years ago.
If you run the P/E calculation on non-gaap income (currently 34.4), and add a projection of market CAGR, it is well within normal range. By my last calculations, AMD has about 2.5x the net inflows as Nvidia per share dollar.
AMD's accounting situation is masking the fact they are making a KILLING currently.
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