HSBC Analysts Say AMD Is Chasing Down Nvidia’s Advantage in the Data Center

Last week, NvidiaNVDA

became the first firm to surpass a $4T valuation, as its generational rally soared to new heights. It has been made possible by a near-doubling of the company’s revenue in recent quarters, but its monopoly in the AI compute market might be in jeopardy.

• According to analysts at HSBC, AMD’sAMD
  new MI355X chip outperforms Nvidia’s Blackwell in 9 out of 10 metrics, a sign that its hardware leadership might face a new challenger.
• With AMD’s hardware already competitive, hyperscalers and buyers could increasingly consider the cheaper MI355X — a potential threat to Nvidia’s market dominance.

CUDA, the hill to die on: Nvidia does have one advantage still — although it remains to be seen how long it really remains that way — in its proprietary parallel-computing CUDA. CUDA cores are specialized parallel processors capable of handling many high-performance computing tasks at the same time. However, as AMD builds its own CUDA challenger with ROCm, Nvidia may have to bank on its existing dominance to keep buyers grounded in its ecosystem.