Nvidia shares rebound; CEO Jensen Huang faces scrutiny ahead of earnings over scandal

After Nvidia shares fell 4.3% and 5.47% on Monday and Tuesday respectively, they rebounded 5.3% in premarket trading on Wednesday, as a scandal involving CEO Jensen Huang allegedly having an affair with a suspected Chinese spy continued to develop. Nvidia has hired the law firm Wachtell, Lipton, Rosen & Katz to investigate whether company secrets or national security were harmed; Jensen Huang returned to the office on Monday, and the company is scheduled to release quarterly earnings on November 17. In a research note, Bank of America listed three scenarios, including contained impact with leadership continuity, uncertainty weighing on valuation before earnings, and an adverse investigation outcome or leadership change requiring a reassessment of earnings; Zacks' chief equity strategist said the selloff reflected concerns that the US might impose further restrictions; Morgan Stanley removed the stock from its preferred list, and the stock has fallen more than 25% since it was added on October 2.