Nvidia (NVDA) shares are up nearly 3% this morning on a report that the tech titan is exploring ways to customize its chips for export to China.  

According to The Information, the semiconductor giant has already told customers in China that it’s working on adjusting the design of its artificial intelligence (AI) chips to make them eligible for sale to local businesses without breaching the latest U.S. export rules. 

Including today’s gains, Nvidia stock is up well over 30% versus its year-to-date low set on April 4. 

Why Is This Report Meaningful for NVDA Investors?

The Information’s report is significant since bypassing the licensing requirement the White House recently announced on export of H20 chips to China will remove a big overhang from Nvidia stock. 

Last month, the artificial intelligence behemoth said those new rules could result in a charge worth more than $5.5 billion in its fiscal Q1. 

NVDA shares are gaining this morning also because several hyperscalers on their recent earnings calls hinted at plans of spending more on AI infrastructure this year.   

That said, Nvidia stock is down more than 20% versus its year-to-date high at the time of writing. 

BofA Analysts Reiterate Confidence in Nvidia Stock

While there may be turbulence in the months ahead, analysts at Bank of America Securities continue to see significant further upside in Nvidia shares over the long term. 

On Friday, they reiterated their “Buy” rating on the AI darling, given “unwavering support for mission critical AI infrastructure investments/even raised capex by major U.S. cloud customers.” 

Nvidia Continues to Be a ‘Strong Buy’-Rated Stock 

Wall Street firms are fully convinced that NVDA will navigate the near-term challenges to emerge stronger on the other side. 

The consensus rating on Nvidia stock currently sits at “Strong Buy” with the mean target of about $166 indicating potential upside of more than 45% from current levels.