The development of popular artificial intelligence (AI) applications like OpenAI's ChatGPT wouldn't be possible without advanced semiconductors (chips). They are fitted inside data centers managed by cloud providers like Amazon, which are rented by AI developers to train their models.

Semiconductor giant Nvidia has an estimated 90% market share in the emerging industry for AI data center chips, but Advanced Micro Devices (NASDAQ: AMD) recently launched its own line of competing hardware.

AMD has struggled over the last 12 months because its core business involves selling chips for segments like gaming and personal computing -- precisely where consumers have cut spending amid challenging economic conditions. As a result, AMD stock trades 30% below its all-time high.

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Source Fool.com