A Jefferies analyst downgraded AMD’s stock, warning of sustained pressure from Nvidia and the prospect of a healthier Intel.

Advanced Micro Devices (NASDAQ:AMD) investors have been pinning their hopes that its latest AI-focused chips will help it close the gap on

Shockingly, based on the trailing price-to-earnings multiple for both companies, AMD's shares are far more expensive. The stock has a P/E of 106, while Nvidia's is much lower at 40. So not only is Nvidia the dominant AI processor company, but its shares are also relatively cheaper, easily making Nvidia the better AI stock to own in this matchup.