Nvidia faces continued concerns about potential restrictions on exports of its AI hardware amid reports that advanced chips are reaching China despite U.S. sanctions.

Nvidia reported revenue that barely exceeded Wall Street’s expectations, triggering an 8.5% stock slide as investors hoped for more outperformance. But Bank of America said that Nvidia is still a solid investment and raised its price target 5%.

Nvidia stock fell as much as 5% Monday as reports surfaced of the tech giant’s AI chips reaching China, raising investor fears the company might face more scrutiny around its exports.

On Monday, reports surfaced that Nvidia chips were making their way to customers in China, with the high-end tech circumventing strict US export controls.

Shares of Nvidia ( NVDA -4.86%) are falling on Monday. The company's stock lost 4.5% as of noon ET, but was down as much as 5.3% earlier in the day. The drop comes as the S&P 500 ( ^GSPC -0.05%) slipped 0.3% and the Nasdaq Composite ( ^IXIC -0.31%) lost 0.4%.

Nvidia faces continued concerns about potential restrictions on exports of its AI hardware amid reports that advanced chips are reaching China despite U.S. sanctions.