AMD's MI355 Chip Promises 3500% Performance Boost, Challenges NVIDIA

Ticker BuzzThursday, Jun 12, 2025 8:13 pm ET
1min read

Advanced Micro Devices (AMD) has escalated the chip war with the introduction of its latest MI355 processor, designed to challenge NVIDIA's B200. During a company event in San Jose, California, AMD CEO Lisa Su announced that the MI355 chip, part of the MI350 series, offers a 35-fold performance improvement over its predecessor. This new chip, which began shipping this month, is engineered to surpass NVIDIA's competing products, marking a significant advancement for AMD in the AI accelerator market.

Lisa Su's ambitious statement highlights AMD's aggressive foray into the AI chip market, a sector currently dominated by NVIDIA. The MI355 chip is a key component of AMD's strategy to expand its market share in high-performance computing and AI applications. By utilizing its advanced manufacturing capabilities and innovative design, AMD aims to capture a substantial portion of the 500 million dollar market that Su believes is within reach.

The launch of the MI355 chip is a strategic maneuver by AMD to contest NVIDIA's dominance in the AI accelerator market. NVIDIA's B200 chip has been a leading product in this space, but AMD's new offering promises to deliver superior performance and efficiency. This rivalry is expected to spur innovation and potentially reduce costs for consumers and businesses that rely on AI technologies.

AMD's emphasis on increasing its manufacturing presence in the United States is also a crucial aspect of its strategy. By expanding its domestic production capabilities, AMD aims to decrease its reliance on foreign suppliers and bolster its supply chain resilience. This initiative aligns with broader industry trends towards onshoring critical technologies to mitigate risks associated with global supply chain disruptions.

Ask Aime: Will AMD's new chip surpass NVIDIA's in AI acceleration?

The AI chip market is on the brink of substantial growth, driven by the escalating demand for AI and machine learning applications across various industries. AMD's MI355 chip is well-positioned to leverage this trend, offering a competitive alternative to NVIDIA's products. As the chip war intensifies, consumers and businesses can anticipate more innovative solutions and potentially lower prices, benefiting from the intense competition between these two industry leaders.