NVIDIA Corporation (NASDAQ:NVDA), Wall Street's AI darling, fell on Monday following reports that a senior executive had met with Chinese officials. The stock slip comes amid Nvidia’s stellar performance last week, which exceeded expectations.

As reported by South China Morning Post, China's Vice Commerce Minister Wang Shouwen met with Nvidia's executive vice president of worldwide field operation responsible for NVIDIA's global business, Jay Puri, on Monday, November 25^th. Puri’s meeting highlighted China’s importance as a key market for Nvidia. Meanwhile, Minister Wang Shouwen highlighted opportunities for foreign businesses in an open China, welcoming Nvidia to deepen its ties within the country, according to a statement.

The meeting comes ahead of an expected escalation of US restrictions on China’s semiconductor industry, which could be announced early this week. It is anticipated that the outgoing administration of US President Joe Biden will soon impose another round of export restrictions on China, with new regulations potentially adding up to 200 Chinese chip companies to a trade blacklist, Reuters reports. Moreover, it is expected that further US curbs on shipments of high-bandwidth memory chips to China will be unveiled next month.

It seems that investors are pricing in these risks, with the news adding to market uncertainty. Amid these risks, the challenge for NVIDIA Corporation (NASDAQ:NVDA) now lies in living up to the market’s sky-high expectations.  Wall Street expects a 54% revenue growth for Nvidia in 2025.  While it is true that the demand for Nvidia’s chips continues to gain momentum, minor setbacks or uncertainties can prove detrimental to the stock due to such expectations.

If the pressure on NVIDIA Corporation (NASDAQ:NVDA) wasn’t already enough, the chip stock is also competing with Apple for the title of the world’s most valuable company. With market capitalizations of about $3.5 trillion each, the stakes are high in meeting market expectations.

Our research director shared his views on NVDA’s earnings results here. He thinks NVDA stock can reach $170 within 3 months. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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 the cheapest AI stock.

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