“While AMD has made significant progress, we view Nvidia hardware as generally ahead by 0.5-1 year, particularly in the system/rack approach, where AMD currently has no experience of building in large scale,” wrote BofA Securities analyst Vivek Arya in research note on Wednesday. He rates AMD stock at Buy with a $200 price target.

Nvidia NVDA slipped on Tuesday as investors awaited earnings from its artificial intelligence chip rival Advanced Micro Devices AMD. Another key earnings report from Super Micro Computer SMCI is also awaited at market close.

Advanced Micro Devices Inc. earnings are expected to show the chipmaker is increasingly benefiting from the artificial intelligence arms race.