AMD Unveils MI355 AI Chip With 35x Performance Boost, Forecasts AI Market to Surpass $500B in 3 Years
AMD has launched its new MI355 AI accelerator chip, claiming a 35-fold performance improvement over previous generations. CEO Lisa Su announced at a California event that the MI355 not only surpasses earlier AMD models but can also compete head-to-head with Nvidia’s B200 and GB200 chips in certain AI tasks. The MI355 is priced lower than rival products, aiming to help companies build AI infrastructure more cost-effectively. Su also revised her projection for the AI chip market, stating it could exceed $500 billion within three years—faster than her previous 2028 estimate. However, despite these announcements, AMD’s stock fell 2.2% following the event. Looking forward, Su revealed the MI400 chip—developed in collaboration with OpenAI—will be released in 2026, though U.S. export controls still limit sales to China. AMD is lobbying for eased restrictions, having recently secured a White House-approved deal with Saudi Arabia. This development underscores AMD’s ambitions in the AI sector and could intensify competition in the AI chip market, potentially impacting tech stocks and the broader digital asset ecosystem.
Neutral
While AMD’s MI355 launch and ambitious AI market forecast highlight increased competition and innovation in the AI hardware sector, the immediate market reaction was muted as reflected by the drop in AMD’s stock. For crypto traders, the news suggests potential for future growth in AI-related digital asset sectors and secondary effects on tokens linked to AI development or chip manufacturing. Historically, AI chip advancements can drive sentiment in tech-focused tokens, but actual price movements are often subdued until tangible adoption or market share gains materialize. Export restrictions remain a limiting factor. Overall, the announcement is noteworthy but not immediately bullish or bearish for the broader crypto market.