The cash-flow story you miss when looking only at NVIDIA and AMD's revenue growth
NVIDIA and AMD both reported revenue growth in their latest quarters. Yet free cash flow fell from the previous quarter at both companies. Looking at revenue growth and cash flow together changes the questions we ask about their results.
We compared the companies' latest quarters using InveDeck's company financial data. B$ means billions of US dollars. NVIDIA's quarter ended July 26, 2026, while AMD's ended June 27, so the reporting periods do not align exactly.
NVIDIA's lead is clear in revenue and profitability
| Item | NVIDIA | AMD |
|---|---|---|
| Quarter-end date | July 26, 2026 | June 27, 2026 |
| Revenue | 96.221 | 11.536 |
| Revenue change year over year | Up 105.9% | Up 50.1% |
| GAAP operating margin | 66.2% | 17.3% |
| Company-defined FCF | 21.341 | 1.558 |
| FCF change quarter over quarter | Down 56.0% | Down 39.3% |
Sources: InveDeck's latest quarterly data and official NVIDIA and AMD earnings releases. Operating margins and growth rates were calculated from underlying figures, then rounded. Revenue and operating income are consolidated GAAP figures; FCF follows each company's definition.
NVIDIA leads not only in revenue scale but also in the share of revenue retained as operating income. AMD's revenue also grew 50.1% year over year, and GAAP operating income turned positive from a loss a year earlier. Both companies grew, but their levels of profitability differ.
Cash flow fell at both companies in the latest quarter
NVIDIA's company-defined FCF fell from $48.554 billion in the previous quarter to $21.341 billion. A decline in operating cash flow from $50.344 billion to $24.077 billion was a major factor. The current-quarter cash flow statement shows $22.346 billion tied up in higher accounts receivable and $5.784 billion in higher inventory. This illustrates the potential timing gap between revenue recognized and cash actually collected.
AMD's FCF fell from $2.566 billion to $1.558 billion. Operating cash flow from continuing operations declined from $2.955 billion to $2.366 billion, while capital expenditure rose from $0.389 billion to $0.808 billion. Less incoming cash and greater investment spending reduced the cash left over.
This should not immediately be interpreted as deteriorating year-over-year growth. The official earnings releases show FCF increasing approximately 58.7% at NVIDIA and 32.0% at AMD from a year earlier. The currently observed pattern for both companies is higher FCF year over year, but lower FCF than in the previous quarter.
What to watch in the next results
For NVIDIA, watch whether increased receivables convert into cash. For AMD, watch whether operating cash flow growth keeps pace with higher investment spending. Reviewing the latest four quarters of cash flow alongside revenue growth can reduce the influence of payment and investment timing in any single quarter.
FCF definitions also differ. NVIDIA deducts spending on property, equipment, and intangible assets, along with related principal repayments. AMD deducts capital expenditure for continuing operations from operating cash flow from continuing operations. We have not used FCF amounts alone to draw conclusions about business efficiency or investment attractiveness.
Select the two companies in InveDeck's Metric Comparison and compare revenue, then FCF. The right-hand end of each company's chart represents its latest reported quarter; the actual quarter-end dates may differ even at the same chart position.
Compare NVIDIA and AMD's FCF on InveDeck
NVIDIA report for this quarter