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Nvidia stock continues to soar as analysts raise targets to $250 on AI chip demand. Can the rally hold, or is NVDA getting ahead of itself?

Nvidia stock spiked on Tuesday. The AI chip titan said it had received assurances from the administration that it can resume sales of key AI chips to China.

Nvidia's recent jump isn't surprising, as the stock's dip earlier in the year didn't seem justified considering the outstanding growth it has been consistently clocking on account of the terrific demand for its artificial intelligence (AI) chips.

Nvidia said it has filed applications to resume selling H20 GPUs in China and has received assurances that licenses will be granted.

China’s move to ease AI chip export rules offers relief for Nvidia and U.S. semiconductor giants. Here’s what it means Nvidia's future stock price outlook.

Key Points Nvidia just became the first company to reach a $4 trillion market cap.It is offering advanced computing solutions for every sector of the economy.Analysts project Nvidia to grow earnings per share at high rates for several more years.

One analyst boosted his price target on Nvidia’s stock to a level that would imply a $5.7 trillion market cap, with the chip maker seemingly cleared to sell its H20 chip in China again.

Subscribe to TheStreet's free daily newsletter 💰💵 Yet, there were a few moments when the momentum seemed to slip, as if something major had stalled. However, a seismic breakthrough may have repositioned Nvidia to be the center of AI and the one defining its future.

Nvidia stock is jumping today following announcements that the Trump administration will allow the company's H20 processor and other hardware to be sold in China. The approval of the export licenses for the company's AI hardware is an unexpected development -- and a big win for CEO Jensen Huang.