(Bloomberg) -- Intel Corp., the biggest maker of personal computer processors, announced new chips for PCs and data centers that the company hopes will give it a bigger slice of the booming market for artificial intelligence hardware.

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The lineup includes updated Xeon server chips — the second overhaul of that processor in less than a year — that use less electricity while boosting performance and memory, the company said in a statement Thursday. Intel’s Ultra Core chips for laptops and desktop computers, meanwhile, will let PCs process AI functions directly.

Intel’s new product with the most to prove may be the Gaudi 3, the latest installment of a line that competes with Nvidia Corp.’s industry-leading H100. These chips — known as AI accelerators — help companies develop chatbots and other rapidly proliferating services. Gaudi 3 is on schedule for release in 2024, and Intel said that it will outperform the H100.

Intel shares rallied as much as 5.6% in New York trading following the announcement, outpacing a 3.1% gain by the Philadelphia Stock Exchange Semiconductor Index.

Chief Executive Officer Pat Gelsinger is counting on AI features to help reinvigorate growth at Intel, which has suffered from past missteps and a broader PC slump. But he faces tougher competition than ever. Longtime rival Advanced Micro Devices Inc. has snatched market share in PCs and servers, and some of Intel’s largest customers are now designing their own chips in-house.

At the same time, Nvidia has become a dominant force in data center chips with its AI accelerators. The products have sent sales soaring and propelled Nvidia’s valuation above $1.1 trillion. It’s now on course to overtake Intel in total revenue this year for the first time, according to analysts’ projections. For decades, Intel was the biggest chipmaker in the world.