Nvidia (NVDA) could face another problem selling high-tech products to China after a Wall Street Journal report claimed that the U.S. Department of Commerce is considering imposing restrictions on the export of artificial intelligence chips to its superpower rival.

This is not the first time the government has tightened controls on chip sales to China. Recall that last September, the Biden administration imposed rules that prevented the semiconductor giant from exporting A100 and H100 chips to Chinese customers without a license. At the time, the company estimated that the potential damage could amount to about $400 million per quarter. Nvidia found a way around this problem by developing less advanced chips, the A800 and H800, which mitigated somewhat.

In the long run, the restrictions on China are clearly a “material constraint.” However, given that the restrictions seem to be permanently set just below the A100 level, this outcome was expected regardless, due to the “rapid performance growth” of Nvidia’s high-end products, which will remain unavailable to Chinese customers.

Thus, Moore reiterated an Overweight (i.e., “buy”) rating on NVDA stock along with a $500 price target. This indicates a potential upside of ~22% over the next year for the stock.

At $467.35, the average price target implies ~14% upside potential from current levels.