AMD Unleashes “Industry-Leading” Chips to Challenge Nvidia’s Dominance
Forget David vs. Goliath — AMD is rewriting the script with a modern spin. On Thursday, the chipmaker revealed a new “industry-leading” processor that narrows the performance gap with Nvidia. With AMD projecting that the total addressable AI chip market will soar to $500B by 2028, CEO Lisa Su set her eyes on the throne — striving to establish AMD as the “end-to-end AI leader.”
- Launching this quarter, AMD’s MI325X chip is said to outperform Nvidia’s current H200 AI chips (FT). The MI350 chip is expected in the second half of 2025, though it will still trail Nvidia’s next-gen Blackwell chipset.
- Catching up with its largest competitor could help close AMD’s sales gap, with Nvidia leading the pack after selling $26.3B worth of AI data center chips in just the last quarter alone, compared to AMD’s expected $4.5B in chip sales this year.
Beyond chips: As artificial intelligence evolves, chips are becoming just one part of a holistic AI playbook. “People want a large cluster [of chips in a server],” said Su, as both AMD and Nvidia scramble to offer scalable, fast-deploying “systems” instead of just components. AMD is also pursuing aggressive acquisitions, including the recent $4.9B purchase of ZT Systems, to strengthen its position in the infrastructure arena. But with Big Tech developing their own in-house chips, the competition is only heating up.
