Nvidia shares edged higher in premarket trading on Tuesday, 10 November, after falling 4.27% in the previous session to a seven-month low as investors weighed an investigation into chief executive Jensen Huang.

The shares closed at $178.67 on Monday after touching their lowest level in seven months. They rose about 1.3% in early premarket trading on Tuesday, according to Reuters, and later traded 1.8% higher at $181.85.

What is being investigated

Nvidia's board has opened an independent investigation into Huang after reports that he had a relationship with a businesswoman suspected by US intelligence officials of links to Chinese intelligence. Huang told staff in an internal memo that he had been unfaithful to his wife and apologised to his family and employees.

The woman at the centre of the reports is Alice Huang, a former executive at Singapore-based Megaspeed International, which has bought large numbers of Nvidia chips over the past two years. US officials are reported to suspect she was gathering information on behalf of Beijing. The allegations have not been proven, and no charges have been announced.

President Donald Trump confirmed on Monday that the Federal Bureau of Investigation is examining the allegations. Three chairs of House committees have also asked for a private briefing on 18 November.

Investors buy the dip

Not all investors are heading for the exit. Cathie Wood's ARK Investment Management bought 90,443 Nvidia shares across its exchange-traded funds on Monday, a purchase worth a little more than $16 million at the closing price, according to Barron's.

Wall Street analysts have so far shown little reaction to the disclosures, with the average price target on the stock at about $332, according to FactSet. Nvidia is due to report third-quarter results on 17 November, which will give investors their next detailed look at the company's trading.

Wider market steadies

The tentative recovery in Nvidia came as US stock futures steadied after Monday's broad rally, when the Dow Jones rose 2.15% and the S&P 500 gained 2.35%. Investors are now waiting for October's US consumer price data, due at 13:30 GMT, which is expected to shape expectations for the Federal Reserve's December meeting.

Chip shares were mixed in premarket trading, with Micron and Marvell Technology about 1% higher while Intel slipped 0.5%, according to Reuters.

Nvidia remains one of the world's most valuable companies, with a market capitalisation of about $4.5 trillion, but the shares are down about 22% over the past month as the AI trade has come under pressure.