AMD's MI355 Chip Takes On Nvidia's B200, GB200 Amid Strong AI Demand

AMD's AI chip MI355 is ramping up production and gaining traction among customers seeking scalable alternatives to Nvidia's high-end GPUs. CEO Lisa Su said demand is strong and competitive versus Nvidia's B200 and GB200 chips. The MI355 is expected to continue driving revenue growth from AMD's data center GPU business throughout the year. AMD sees the MI355 as a stepping stone toward its next-generation MI400 series, set to launch in 2026.

Advanced Micro Devices Inc. (AMD) has seen significant progress in its AI chip segment, with the MI355 gaining traction among customers seeking scalable alternatives to Nvidia's high-end GPUs. CEO Lisa Su recently highlighted the strong demand and competitive positioning of the MI355 against Nvidia's B200 and GB200 chips [1]. The AI chip is expected to continue driving revenue growth from AMD's data center GPU business throughout the year.

The company's quarterly sales forecast for the third quarter of 2025 indicates a robust outlook for the AI chip segment. AMD expects third-quarter sales to reach approximately $8.7 billion, which is higher than the average analyst estimate of $8.37 billion [1]. This forecast does not include sales of AI chips to China, where US export controls were recently eased, signaling potential future growth in that market.

The MI355 is not only a current success story for AMD but also a stepping stone toward the company's next-generation MI400 series, set to launch in 2026. Lisa Su emphasized the company's commitment to expanding its system-level capabilities to support deployments powered by AMD CPUs, GPUs, and NICs [3]. The launch of ROCm 7, with 3x higher inferencing and training performance, and the projected rapid development of the MI400 series are further indicators of AMD's focus on AI infrastructure [3].

Investors have responded positively to AMD's recent developments, with the stock rising about 1% in extended trading following the announcement of the third-quarter forecast [1]. The stock has been the best-performing semiconductor stock in 2025, with a 44% year-to-date gain [2]. However, the China market remains a question mark, and the exact timing of revenue from sales to China is still uncertain.

Overall, AMD's AI chip segment is showing strong signs of growth and competitive positioning. The company's ability to deliver competitive products, particularly in the AI hardware market, is a key factor in its recent success. As the market for AI accelerators continues to grow, AMD's focus on innovation and customer demand will be crucial for maintaining its momentum.

References:
[1] https://www.livemint.com/companies/news/amd-gives-solid-forecast-showing-strength-of-demand-for-ai-11754427075972.html
[2] https://ca.finance.yahoo.com/news/amd-snaps-6-day-winning-123755554.html
[3] https://seekingalpha.com/news/4479395-amd-outlines-28-percent-revenue-growth-guidance-for-q3-2025-amid-mi350-ramp-and-strong-data