The Wall Street Journal reports Advanced Micro Devices (AMD) announced today that it's released a new graphics card that some reviewers are calling the most powerful on the market.

AMD’s product is called the ATI Radeon HD 4870 X2 and will sell for about $549. It will be targeted at gamers and computer enthusiasts willing to spend heavily on hardware that allows for extreme graphics.

AMD’s biggest competition is Nvidia (NVDA), but recently their strategies have diverged with Nvidia focusing on making powerful individual chips while AMD has shifted toward making cheaper, energy-efficient ones.

NVDA closed the session +1.25% to $11.07 and AMD added +1.96% to $5.21.

From the Bull Pen: In the chip space, bulls can look to Lam Research Corp. (LRCX) for a better upside play and can set near-term sell-stops below $38.

From the Bear Cave: Those bearish can simply choose the semiconductor ETF (SMH); fading (read: sell) into the $32 level can be an option.