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

The Trump administration’s potential deal with Nvidia over its chip exports is rankling conservative China hawks, who see it as a bad move for American national security and want a more muscular strategy of economic statecraft against Beijing.