AMD plans to challenge Nvidia in the AI chip market with its upcoming MI400 series

From Nasdaq: 2025-06-20 05:20:00

Advanced Micro Devices (NASDAQ: AMD) has made strides in the AI accelerator market, but lags far behind Nvidia (NASDAQ: NVDA) in revenue. In 2024, AMD generated just $5 billion in AI accelerator revenue, compared to Nvidia’s $39 billion in the most recent quarter. AMD’s latest GPUs, the Instinct MI350X and MI355X, offer impressive performance but still fall short of Nvidia’s latest offerings.

Looking ahead to 2026, AMD plans to release its next-gen MI400 series AI accelerators, with the flagship MI400X boasting 10 times the power of its predecessor. Nvidia’s Vera Rubin chips, expected in late 2026, are set to significantly outperform their current lineup. AMD’s new rack-scale AI solution, Helios, will feature up to 72 MI400 GPUs, Venice EPYC server CPUs, and a next-gen Vulcano AI network interface card.

Despite AMD’s advancements, Nvidia is likely to maintain its dominance in the AI chip market. With a market size projected to reach $500 billion by 2028, AMD aims to grow its AI chip revenue substantially. The company’s MI400 series and Helios solution set the stage for growth, but Nvidia’s powerful hardware and software ecosystem present a formidable challenge.

Investors eyeing Advanced Micro Devices should consider the company’s position in the AI chip market and its competition with Nvidia. While AMD is poised for growth with its upcoming releases, Nvidia’s established market presence and ecosystem give it a strong advantage. The Motley Fool’s Stock Advisor team has identified potential investment opportunities, with AMD not currently among their top picks.



Read more at Nasdaq: Could AMD Finally Challenge Nvidia With Its MI400 AI Chips?