Aiming at the problems of small output displacement and poor stability of existing giant magnetostrictive micro-drive turning tool holder, a new type of giant magnetostrictive actuator (GMA) for active control of the turning chatter turning tool holder was designed. Based on ANSYS simulation software, the magnetic field intensity and distribution of the GMM rod under the state of open and closed magnetic circuits were explored, and a GMA dynamic displacement characteristic test system was built to study the influence of current frequency and preload on the GMA output characteristics. The research results show that the average magnetic field strength through the giant magnetostrictive rod in the closed magnetic circuit state is higher and the uniformity is better; when the pre-pressure is constant, the peak-to-peak value of the dynamic output displacement of the GMA is negatively correlated with the frequency of the input current; when the pre-pressure is 300 N, the peak-to-peak value of the dynamic output displacement of GMA reaches the maximum value of 45 μm. The simulation and experimental results show that the proposed new GMA can stably output dynamic displacement and meet the needs of actively controlling the excitation frequency and maximum dynamic output displacement of turning chatter. The designed giant magnetostrictive micro-drive turning tool holder is completely feasible.