Advanced Micro Devices AMD saw a 1.26% increase in pre-market trading on Monday after revealing its latest AI processors.

What Happened: At the Computex technology trade show in Taipei, AMD CEO Lisa Su introduced the MI325X accelerator, which is expected to be available in the fourth quarter of 2024, Reuters reported. The company aims to develop AI chips over the next two years to compete with Jensen Huang‘s $2.7 trillion industry leader NVIDIA NVDA.

At the time of writing, AMD’s stock was trading at $169.00, up from $166.90 on Friday. The demand for advanced AI chips has surged due to the growing need for generative AI programs in data centers.

Santa Clara-based AMD is challenging Nvidia, which holds about 80% of the AI semiconductor market. AMD plans to release new AI chips annually, similar to Nvidia’s strategy.

“AI is clearly our number one priority as a company,” Su told reporters. AMD also announced the MI350 series, expected in 2025, and the MI400 series, set for 2026, both featuring new architectures.

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Investors are keen on long-term updates from chip firms to gauge the sustainability of the AI boom. AMD’s shares have more than doubled since early 2023, although Nvidia’s shares have risen over sevenfold in the same period.

AMD’s latest CPUs will be available in the second half of 2024. The company also detailed new neural processing units (NPUs) for AI tasks in PCs, with devices from HP and Lenovo set to feature these chips.

Why It Matters: AMD has been making significant strides in the semiconductor market, recently expanding its partnership with Samsung Electronics Co. to develop 3-nanometer chip processing technology. This collaboration aims to narrow the market share gap with Taiwan Semiconductor Manufacturing Co.

Additionally, AMD has captured a 33% share in the server CPU market and is preparing to launch its next-gen “Turin” processors. The company has also unveiled a GPU roadmap following the MI300 product line, as highlighted during the JP Morgan Global Technology, Media, and Communications conference.

Despite these advancements, CNBC “Mad Money” host Jim Cramer recently remarked that while AMD under $150 would be “terrific,” it still doesn’t possess the same market dominance as Nvidia.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari