Nvidia (NVDA 3.46%) has earned its place atop the artificial intelligence (AI) arena. The semiconductor titan supplies the lion's share of the chips that power the most popular AI models and applications.

But kings can be dethroned, and new challengers can emerge. Advanced Micro Devices (AMD 3.04%), for one, has its sights set on becoming a more powerful force in this explosive market. Here are some more reasons why AMD's stock is an intriguing buy today.

1. A stunning opportunity in AI

AMD's chips enjoy a variety of uses. Key end markets include the personal computer (PC), gaming, and data center industries. The booming demand for AI solutions is poised to expand all these markets and perhaps more than many investors currently expect.

CEO Lisa Su sees the market for AI accelerators -- cutting-edge processors that help to reduce the time it takes to train AI models and run other machine learning workloads -- expanding to more than $150 billion by 2027. And that's in the data center market alone. During the company's second-quarter earnings call, Su said:

Longer term, while we are still in the very early days of the new era of AI, it is clear that AI represents a multibillion-dollar growth opportunity for AMD across cloud, edge, and an increasingly diverse number of intelligent endpoints. 

2. Cloud providers want competition

Estimates for rival chipmaker Nvidia's share of the machine learning processor market reach as high as 95%. Cloud infrastructure leaders like Amazon, Microsoft, and Alphabet rely on Nvidia to supply a significant portion of the chips that power their data centers. But none of the major cloud companies want to be beholden to a single supplier for such vital components.

Moreover, Nvidia has struggled to keep up with demand. Wait times for Nvidia's AI processors reportedly have reached as long as eight months, according to Bloomberg. 

AMD's forthcoming processors are thus likely to be met with open arms by the major cloud platforms and other key chip buyers. "There is no question that the demand for generative AI solutions is very high, and there is a lot of compute capacity that needs to be put in," Su said. 

3. AMD's new AI chips are impressive

There's no doubt that Nvidia's chips are well-designed and selling like hotcakes. But AMD's new MI300X accelerators are worthy challengers. The high-performance chips are specifically designed to train and run the most advanced AI models, such as OpenAI's ChatGPT. The MI300X contains a whopping 192 gigabytes of high-speed memory, which compares favorably to Nvidia's popular H100 processors. 

AMD expects to roll out its new AI-focused chips later this year. "Customer interest in MI300X is very high," Su said. "There are a number of customers that are looking to deploy as quickly as possible."

Importantly, AMD is also developing software that integrates with its chips to further optimize AI workloads. Nvidia's highly regarded software has helped to differentiate it from its rivals. But AMD's open-source approach could prove popular with developers and end users and perhaps give it an edge over Nvidia in this increasingly important aspect of AI computing.