Intel hired a leading executive from rival AMD on Wednesday and established a new group to develop "integrated graphics for the PC market with high-end discrete graphics solutions for a broad range of computing segments."

While Intel's microprocessors have long dominated the PC and server markets, computer companies are increasingly using graphics chips to augment those processors to enable artificial intelligence and other new capabilities. AMD and another Intel rival, Nvidia, have held an edge in those technologies.

On Wednesday, Intel said it hired Raja Koduri [pictured here] as the chief architect and vice president in charge of its newly formed Core and Visual Computing Group. Koduri, 49, had previously been AMD's chief architect. Prior to that, he spent four years as Apple's director of graphics architecture.

"Raja is one of the most experienced, innovative and respected graphics and system architecture visionaries in the industry and the latest example of top technical talent to join Intel," Intel chief engineer Murthy Renduchintala said in a written statement Wednesday.

Intel chief executive Brian Krzanich has completely overhauled the executive team since taking the top job in 2013. He's replaced longtime Intel insiders with new top execs with experience at Qualcomm, eBay, Procter & Gamble and Dow Chemical.

Wednesday's hire and the creation of a new business unit signals that Intel will continue aggressively remaking the company in pursuit of new markets as its core business -- processors for PCs and laptops -- continues to fade.

Intel shares closed Wednesday at $46.70, down 8 cents before the company announced Koduri's hire. After three years of stagnation, Intel shares are up sharply since September and are now near their highest point since the dot-com era.