Chip Wars upgrade! AMD (AMD.US) MI355 chip asks Nvidia B200, Su Zifeng says the $500 billion market is “within reach”

The Zhitong Finance App learned that AMD (AMD.US) CEO Su Zifeng said that the company's latest AI processor is expected to challenge Nvidia chips, and she expects the market to exceed 500 billion US dollars in the next three years.

At a company event in San Jose, California, Su Zifeng said that the new generation of MI350 series chips surpassed Nvidia's competitors in speed and achieved a major breakthrough compared to previous generation products. The performance of the MI355 chip, which began shipping this month, has increased 35 times.

Although AMD is still far behind Nvidia in the AI accelerator market (chips used to develop and run artificial intelligence tools), the company plans to close the gap with new products. The stakes in this competition are unprecedented: Su Zifeng previously predicted that the market size would reach 500 billion US dollars in 2028, but now she believes this figure will be surpassed.

“People used to think $500 billion was an unattainable figure,” she said at a briefing after her speech. “Now it seems within reach.”

AMD's forecast growth rate for the data center business in February this year fell short of what some analysts expected. The company believes that the new MI series products will revive the growth momentum and prove that they can compete head-on with larger rivals.

AMD claims that the performance of the MI355 is superior to Nvidia B200 and GB200 products when running AI software, the performance is flat or better when generating code, and the price is significantly lower than competitive products.

Investors reacted lackluster to AMD's new product launch. The New York stock price closed down 2.2% to $118.50 on Thursday, reversing this year's slight increase.

As two major suppliers of advanced computer graphics chips, Nvidia and AMD products have become the core components of AI development. Global giants invested hundreds of billions of dollars in infrastructure, causing chips to continue to be in short supply, and the price of a single chip soared to tens of thousands of dollars.

The AI accelerator business helped AMD get rid of the suppression of its old rival Intel in the PC processor field, but Nvidia has surpassed both. Although AMD earns billions of dollars in revenue from AI accelerators, Nvidia's annual revenue has exceeded 100 billion dollars.

Su Zifeng also announced the MI400 series, which will be launched next year, saying that it will establish a clear advantage over Nvidia chips during the same period. She said the new product will add memory and high-speed information reading components, which are critical to the operation of AI software.

OpenAI CEO Sam Altman appeared on the same stage and revealed that MI400 R&D has absorbed suggestions from the company's engineers. Altman said that when he first heard the MI400 parameter specifications, he secretly suspected “absolutely impossible,” but this year, AI services have transformed from a novelty to a carrier of commercial value, and demand for computing power infrastructure has exploded.

The key question is whether AMD can expand AI chip sales. Due to US trade restrictions, AMD and Nvidia have both been banned from selling the most powerful components to China. Su Zifeng said she is actively lobbying the Trump administration to ease restrictions on AI component exports to other countries.

She revealed that she had consulted Washington to ensure compliance before signing the recent Saudi order, and emphasized the need for more trade freedom to ensure the central position of US technology in global AI development.