On Tuesday, Advanced Micro Devices Inc. AMD CEO Lisa Su said that the company's latest AI chip, the MI355, is ramping up production and gaining traction among customers seeking powerful and scalable alternatives to Nvidia Corporation's NVDA high-end GPUs.<h2 id="zu67mbh94">MI355 Gains Ground Amid Strong AI Demand</h2>During AMD's second-quarter earnings call, Su said that the company began producing its MI355 chips in June and has seen &#34;strong ramp&#34; heading into the third quarter. She said customers are showing growing interest in AMD's data center GPUs, positioning the MI355 as a direct competitor to Nvidia's B200 and GB200 chips.&#34;What we're seeing with MI355 is very competitive versus the B200, GB200 family of products,&#34; Su said. &#34;There's a strong desire to really use us at scale.&#34;Su noted that AMD's previous AI chip, the MI300, had smaller deployments initially. However, with the MI355, she said, demand is broader — driven by the chip's performance in inferencing and training workloads, two key pillars of AI development.<h2 id="j3jy8inbg">AMD Targets Growth Into Next Quarter And Beyond</h2>Su added that the company expects continued revenue growth from its data center GPU business throughout the second half of the year.&#34;We're bullish on MI355 and where the AI opportunity is for us,&#34; she said. &#34;And I think we're right on track to what we expected.&#34;AMD sees the MI355 as a stepping stone toward its next-generation MI400 series, set to launch in 2026.<h2 id="jh8j7hehm">How AMD Chips Are Faring Compared To Nvidia</h2>As Nvidia struggles in the AI chip market due to U.S. export bans and supply shortages, AMD has emerged as a viable challenger — especially in India and the UAE.Nvidia's H100 chips, priced up to $40,000, remain the go-to for tech giants like Microsoft Corporation MSFT and Meta Platforms, Inc. META. However, AMD's MI300 series offers a more affordable and power-efficient alternative.The MI300X features 192GB of memory — double that of Nvidia's H100 — and the MI350X is expected to cost around $25,000.In June, AMD unveiled its Instinct MI355X and MI350X GPUs at ISC 2025, showcasing significant performance gains for AI inference, particularly with support for low-precision formats such as FP4 and FP6.Based on the CDNA 4 architecture, the chips feature 288GB of HBM3E memory with up to 8 TB/s bandwidth, reported Tom’s Hardware.The MI355X, designed for liquid cooling, consumes up to 1400W and delivers 20.1 PFLOPS in FP4/FP6 tasks, while the air-cooled MI350X consumes 1000W and hits 18.45 PFLOPS.Both surpass Nvidia's Blackwell B300 on paper but are limited to eight-GPU scaling, which may affect competitiveness. Real-world performance remains to be seen, the report added.<h2 id="up8mogihl">Nvidia Rival's Q2 Results Beat Revenue Expectations</h2>For the second quarter, AMD reported revenue of $7.69 billion, beating analyst estimates of $7.41 billion. However, adjusted earnings came in at 48 cents per share, narrowly missing expectations of 49 cents.Segment-wise, data center revenue rose 14% year over year to $3.2 billion. Client and gaming revenue surged 69% to $3.6 billion, while embedded revenue declined 4% to $824 million.AMD expects third-quarter revenue of approximately $8.7 billion, plus or minus $300 million, ahead of analyst forecasts of $8.15 billion.Price Action: AMD shares have climbed about 44.50% year-to-date. However, the stock declined 6.34% in after-hours trading, falling to $163.25 at last check, per Benzinga Pro.Benzinga’s Edge Stock Rankings indicate that AMD maintains strong upward momentum across short, medium and long-term periods.

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AMD CEO Lisa Su announced that the MI355 AI chip is gaining traction as a scalable alternative to Nvidia's high-end GPUs, with production ramping up since June. The MI355 is positioned as a direct competitor to Nvidia's B200 and GB200, driven by strong demand in AI workloads. AMD reported Q2 revenue of $7.69 billion, exceeding estimates, and expects Q3 revenue around $8.7 billion. Despite a year-to-date stock increase of 44.5%, AMD shares fell 6.34% in after-hours trading to $163.25.

- Advanced Micro Devices Inc. (AMD) CEO Lisa Su announced that the MI355 AI chip is ramping up production and gaining customer interest as a competitor to Nvidia's GPUs.  
- AMD reported a revenue of $7.69 billion for Q2, exceeding estimates, with data center revenue rising 14% year-over-year.  
- The company anticipates continued growth in the second half of the year, projecting third-quarter revenue around $8.7 billion, ahead of analyst forecasts.

Lisa Su Says AMD's AI Chip MI355 Taking On Nvidia's B200, GB200 Head-On As AI Customers Seek Scalable GPU Alternatives