At the Computex technology trade show in Taipei, AMD CEO Lisa Su introduced the MI325X accelerator, which is set to be made available in the fourth quarter of 2024.

AMD shares added 1.4%, while Nvidia rose about 3% before the bell.

The race to develop generative artificial intelligence programs has led to towering demand for the advanced chips used in AI data centers able to support these complex applications.

AMD has been vying to compete against Nvidia, which currently dominates the lucrative market for AI semiconductors and commands about 80% of its share.

Since last year, Nvidia has made it clear to investors that it plans to shorten its release cycle to annually, and now AMD has followed suit.

"AI is clearly our number one priority as a company and we have really harnessed all of the development capability within the company to do that," Su told reporters.