AMD (AMD) is poised to take the fight to AI superchip rival Nvidia (NVDA).

On Tuesday, AMD unveiled its most advanced chip yet targeted toward red-hot generative AI technology. Dubbed the MI300x, it can use up to 192GB of memory. The beefy memory capabilities mean AMD's new chip could be applied to AI large language models, commonly known as "LLMs."

The graphics processing units (GPUs) of AMD's ilk are the kinds that power OpenAI's popular ChatGPT AI platform.

And AMD's new chip could be ripe to wrestle market share away from Nvidia's buzzy AI chip called the H100, which supports 120GB of memory.

AMD chairman and CEO Dr. Lisa Su told Yahoo Finance Live (video above) the technology is transformative, and the unveiling was a "special day" in her career and for the company.

"There’s an incredible amount of technology on here — we’re talking about the most complex chip we’ve ever built," Su explained. "The whole purpose is to make AI much much more accessible. So everybody who wants to use AI needs more GPUs, and we have a GPU that is incredibly powerful; very, very efficient; and we believe will be a significant winner in the AI market."

Su believes AMD will be able to make enough chips in 2024 to support demand. She declined to share the pricing on the new AI chips.

AMD stock fell 3% on Tuesday following the product release news despite the clear promise of the technology.

But shares have shot up 82% year to date in hopes that AMD can rival Nvidia in AI chips while also continuing to win market share in data centers from struggling competitor Intel (INTC).

"AMD appears to have a large design win for its MI300 chip, however, we question the sustainability of a combined graphics/CPU IC given performance limitations and an unsuccessful history," Citi chip analyst Chris Danely pointed out in a new client note. "While we expect AMD to keep gaining share versus Intel, the ramp of its new Genoa product appears to be slower than expected."

Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on the banking crisis? Email [email protected]

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