Earlier this week, US President Donald Trump’s administration announced plans to rescind Biden-era AI chip restrictions. The move catapulted several top AI stocks, including Nvidia (NVDA) and AMD. Throughout the first four months of the year, Nvidia had struggled lightly, being front and center within ongoing geopolitical tension that threatened its US and Chinese market share. That could be changing, however, thanks to the reported lifting of the US chip restrictions.

Trump officials are reportedly working toward a new rule that would strengthen the control of chips abroad and remove the chip restrictions. “The Biden AI rule is overly complex, overly bureaucratic, and would stymie American innovation,” the Commerce Department’s Bureau of Industry and Security said in a statement released by a spokesperson. “We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance.”

Trump rescinding the US chip restrictions could represent a major shift set to take place for Nvidia (NVDA), as it gained for two straight days due to the chip export shift that could have the stock on pace for a trip to the $200 level. After a worrisome start to the year, traders are anxiously awaiting to see if this could be the turnaround many had hoped for. While Friday saw the stock correct by less than half a percent, there is still a bright future for the chipmaker’s shares, thanks to the development.

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After the news was announced on Wednesday, Nvidia (NVDA) stock edged up 3%. Specifically, traders saw the benefit in the green repeal that will address the complexity of exporting chips overseas. On Thursday, the US and UK announced a new trade deal, leading the stock to jump alongside the market yet again. Now, it’s trading at the $118 level with some potential to gain even more.

The question is, what is the stock’s ceiling? According to CNN data, Nvidia has a median price target of $160, representing a 35% jump from its current position. However, its bullish projection sits at $235, representing 99% upside for the AI chipmaker. On the other end, it has a $100 bearish scenario lying in wait, which gives the shares a 15% downside risk.