Nvidia (NVDA) shares are inching up on Tuesday following reports the artificial intelligence giant plans on releasing a toned-down version of its Blackwell chip to resume business in China. 

According to sources that spoke with Reuters on condition of anonymity today, the company has specifically designed the tailored version of that AI chip to comply with U.S. export regulations. 

Including today’s gain, Nvidia stock is up some 55% versus its year-to-date low. 

What a Toned-Down Blackwell Chip May Mean for Nvidia Stock

According to Jensen Huang, the chief executive of Nvidia, tightened export restrictions under President Donald Trump have forced the company to surrender up to $15 billion in sales this year. 

Launching a simplified iteration of its Blackwell chip is, therefore, significant for NVDA shares as it could help the Nasdaq-listed firm maintain access to a $50 billion data center market (China).

Additionally, adjusting its product line will likely help the AI darling reclaim its market share in China that, due to export restrictions, has crashed from 95% to just 50% in recent months. 

All in all, resuming business in China without having to cross the U.S. could boost investor confidence and unlock significant further upside in Nvidia stock. 

Piper Sandler Says Stick to NVDA Shares Ahead of Q1 Earnings

Piper Sandler analysts also recommend that investors stick to Nvidia stock ahead of the firm’s Q1 earnings since the release could serve as the much-needed catalyst that pushes them up further in the weeks ahead. 

Despite recent headwinds, consensus is for the chipmaker to earn $0.80 a share in its first fiscal quarter, which would mean healthy year-over-year increase of nearly 38%. 

Piper Sandler reiterated its “Overweight” rating on Nvidia shares in its research note today, adding the AI stock could rally more than 10% from here to hit $150 over the next 12 months.  

Wall Street Hasn’t Lost Conviction in Nvidia

Investors should note that other Wall Street analysts are even more constructive on NVDA shares at writing. 

The consensus rating on Nvidia currently sits at “Strong Buy” with the mean target of about $167 indicating potential upside of nearly 25% from current levels.