Nvidia (NVDA) is retreating 4% after an analyst at Japanese bank Mizuho warned that the U.S. could eventually prevent the tech giant from selling any of its chips to Chinese entities.

A Total Ban Could Be Imposed

The Biden administration prevented NVDA and its peers from shipping their most advanced chips to China, and the Trump administration is mulling over the idea of increasing the number of NVDA chips that cannot be shipped to China without licenses, Bloomberg reported last week. What's more, the administration is also pressuring its allies to put curbs on the export of chip-making equipment to the Asian country.

But Mizuho analyst Jordan Klein recently suggested that Washington could decide to "ban every and all NVDA chip sales into China." Such a move could cause analysts to cut their revenue and earnings per share estimates for the company for this year by $4 billion to $5 billion and 18 cents, respectively, according to Klein.

Klein Remains Bullish on NVDA

Despite Klein's warning about Washington possibly banning all sales of NVDA's chips to China, he remains upbeat on the company's overall outlook. That's because the analyst believes that the shares already reflect a decline in the company's revenue from China.

Klein thinks that the stock has a better chance of rising in the second half of the year.

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