AMD is trying to make a dent in the AI graphics card market, but will it be able to eat into Nvidia's market share?

Intel and AMD unveiled a new x86 ecosystem advisory group will enlist several tech giants as members, including Microsoft, Dell Technologies, HP Inc., Hewlett Packard Enterprise, Lenovo and Google.

Computer systems based on AMD’s MI325X processors will be available soon and have an edge over machines running Nvidia’s H100, CEO Lisa Su said at a company event in San Francisco on Thursday. The MI325X’s use of a new type of memory chip will give it better performance at running AI software — a process known as inference — she said.

Taiwan Semiconductor Manufacturing, also called TSMC, is the world's leading foundry, responsible for 62% of the world's semiconductors and an estimated 90% of the advanced processors used for AI. Any curbs on the sale of processors would trickle down to TSMC, crimping its revenue.

Semiconductor stocks took a sharp hit on the New York Stock Exchange, with Nvidia, a leader in AI chips, seeing a nearly 5% drop.

The question is, can this new chip help AMD become the next big AI winner? Read More: Earn up to $845 cash back this year just by changing how you pay at Costco! Learn more here.

The front of the Nvidia headquarters in Santa Clara, California. (Justin Sullivan/ North America/TNS) Biden administration officials have discussed capping sales of advanced AI chips from Nvidia Corp.