Investing.com -- Advanced Micro Devices (NASDAQ:AMD) shares rose in premarket U.S. trading on Wednesday, paring back some losses in the prior session that were seen after the semiconductor maker unveiled details about its new artificial intelligence chip.
The chip, known as the MI300X, will feature an accelerator that is designed to speed up processing times for generative AI programs like ChatGPT and other similar chatbots. In an interview with Reuters, AMD Chief Executive Lisa Su said the technology will help companies corral costs of delivering services akin to ChatGPT.
At an event in San Francisco on Tuesday, AMD said the chip will begin to be released in small amounts in the third quarter, followed by mass production in the final three months of 2023.
Santa Clara-based AMD did not announce any specific customers for MI300X or its smaller version, nor did it reveal its cost or how it will impact sales.
But analysts at Piper Sandler argued that the company has the "building blocks" to address the needs of both cloud and enterprise businesses. They added that AMD has made a "special effort" to highlight the chip's compatibility in comparison to rival models.
AMD shares ended Tuesday down by 3.6% following the presentation. However, they have doubled in price since the start of the year, fuelled by burgeoning excitement over AI technology.