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Intel ( INTC ) unveiled its latest processors on Tuesday, as the chipmaker looks to grab market share from rivals in the burgeoning artificial intelligence (AI) data center market.

Intel unveiled the Xeon 6 data center chips at the Computex trade show in Taipei along with other leading chipmakers. The next-generation chips come in two flavors: a more powerful processor to handle the workload of greater AI infrastructure demands, and an efficiency model that the company has positioned as a replacement for earlier-generation chips.

Intel said the efficiency chip will require about 67 percent fewer server racks, making it suitable for hosting websites, streaming media and processing database calculations. “Simply put, increase performance, decrease power,” CEO Pat Gelsinger said during a presentation at the event, according to a report from Reuters.

Higher power chip available in Q3

Intel said the efficient Xeon chip would be available for shipping on Tuesday, but noted that the more powerful processor won’t ship until the third quarter of this year. It also intends to release additional iterations of the chips in 2025.

The chipmaker also said its Gaudi 3 accelerator kit, which contains eight Xeon 6 chips, will sell for about $125,000, making it significantly cheaper than Nvidia’s ( NVDA ) comparable HGX server system with eight H100 AI chips , which can cost more than $300,000, according to custom server vendor Thinkmate, Reuters reported.

Intel, which makes its own processors, will be hoping that its competitively priced data acquisition chips can help it regain market share that has been lost to rivals over the past year due to several manufacturing challenges. Analysts expect the chipmaker’s sales to grow just 2.8% this year. In contrast, Wall Street sees rivals Nvidia and Advanced Micro Devices (AMD) with annual sales growth of 97.5% and 12.6%, respectively.

Watch the price at this key level on the back of a further decline

Zooming out to the weekly chart, Intel shares broke below the lower trend line of an uptrend channel and the 50-day moving average in early April, and the decline accelerated in early May. More recently, price has been consolidating within a pennant, a chart pattern that indicates a continuation of the current longer-term downtrend.

If shares decline from these levels, investors should watch the price react to its low since late February at $24.73. Failure of buyers to defend this level could cause the downtrend to revisit key multi-year support around $19.50, which is currently 36% below Monday’s close of $30.29.

Intel shares rose in premarket trading, but fell 0.3% to $30.20 about an hour after the open on Tuesday.

UPDATE: This article has been updated with recent stock price information.

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