“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.

In Q2, the chipmaker's data center revenue grew just 14% year over year, versus 57% in Q1, due to the export controls that prevented the sale of its AI-enabling GPU chips to China.

AMD stock price crashed by over 6% in the extended hours after the blue-chip semiconductor company published mixed second-quarter results.