Nvidia would benefit from being permitted sales to China, but the deal with the Trump administration is likely to face legal scrutiny.

Nvidia's stock hit a new high after the company struck a deal with the U.S. government to resume the sale of select chips to China.

Nvidia stock is in the spotlight after the chipmaker secured approval to resume selling its advanced H20 AI chips to China. The deal, however, comes with a controversial twist — the Trump administration is requiring Nvidia and AMD to give 15% of their China AI chip sales revenue to the U.