NVIDIA Corporation (NVDA) is advancing 3% after Bank of America increased its price target on NVDA stock to $160 from $150. Additionally, the Trump administration officially announced that it would rescind some export restrictions imposed on AI chips by the Biden administration.

Schwab Network reported the news on May 14.

Why Bank of America Raised Its Price Target on NVIDIA Corporation (NVDA)

The bank noted that NVIDIA Corporation (NVDA) and AMD (AMD) had announced projects with HUMAIN, a subsidiary of the Saudi Arabia Public Investment Fund. Bank of America estimates that the combined annual value of the two companies' projects with Humain will be $3 billion to $5 billion.

Additionally, by providing AI chips for foreign countries, NVIDIA Corporation (NVDA) can circumvent power shortfalls in the U.S. and compensate for restrictions on its shipment of such chips to China, the bank asserted.

Speaking of governmental restrictions on exporting AI chips, the Trump administration disclosed that it would rescind a rule issued by the Biden administration which curbed the export of AI chips to many countries. The Trump administration had previously indicated that it would terminate the rule, but the official announcement was made today.

While we acknowledge the potential of NVDA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.

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