AMD's net income growth significantly outpacing its cash flow growth is a red flag, indicating that this trend is unsustainable and could lead to negative consequences for investors when it eventually reverses.
"this difference in cash flow growth reported by AMD compared to its net income growth, that does worry me a little. Higher income growth versus cash flow doesn't necessarily mean management is playing fast and loose with the accounting tricks to grow that net income number, but it's still a red flag. Net income cannot grow faster than cash flow forever and could be a harsh wake up for investors when it does reverse."
