By Arsheeya Bajwa

TAIPEI, June 3 (Reuters) - Advanced Micro Devices ( AMD )

unveiled its latest artificial intelligence processors

on Monday and detailed its plan to develop AI chips over the

next two years in a bid to challenge industry leader Nvidia ( NVDA )

.

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.

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.

Santa Clara, California-based AMD has been vying to compete

against Nvidia ( NVDA ), which currently dominates the lucrative market

for AI semiconductors and commands about 80% of its share.

AMD also introduced an upcoming series of chips titled

MI350, which is expected to be available in 2025 and will be

based on new chip architecture.

Compared to the currently available MI300 series of AI

chips, AMD said it expects the MI350 to perform 35 times better

in inference - the process of computing generative AI responses.

Additionally, AMD revealed the MI400 series, which will arrive

in 2026 and will be based on an architecture called "Next".

Investors who have poured billions of dollars into Wall

Street's picks-and-shovels trade have been seeking longer-term

updates from chip firms as they evaluate the longevity of the

booming genAI rally, which so far has shown no signs of slowing

down.

AMD's shares have more than doubled since the start of 2023.

This surge still pales in comparison to the more than seven-fold

rise in Nvidia's ( NVDA ) shares in the same time period.

AMD is aiming at an AI chip product cycle of one year.

Similarly, Nvidia ( NVDA ) said it plans to release a new family of AI

chips every year.

AMD CEO Su said in April that the company expects AI chip

sales of roughly $4 billion for 2024, an increase of $500

million from its prior estimate.

At the Computex event, AMD also said its latest generation

of central processors (CPUs) will likely be available in the

second half of 2024.

While businesses generally prioritize spending on AI chips

in data centers, some of AMD's CPUs are used in conjunction with

graphics processor units, though the ratio is skewed in favor of

GPUs.

AMD detailed architecture for its new neural processing

units (NPUs), which are dedicated to handling on-device AI tasks

in AI PCs.

Chipmakers have been banking on added AI capabilities to

drive growth in the PC market as it emerges from a years-long

slump.

PC providers such as HP and Lenovo ( LNVGF ) will

release devices which include AMD's AI PC chips. AMD said its

processors exceed Microsoft's ( MSFT ) Copilot+ PC requirements.