Nvidia shares rebound 4% as Huang faces scrutiny ahead of earnings

Nvidia's stock rose premarket on Wednesday, after falling for two days amid the scandal that has rocked the world's most valuable tech company.

Shares had closed down 5.47% on Tuesday as more details were revealed about the impact of CEO Jensen Huang's affair with an alleged Chinese spy. They fell 4.3% Monday.

Shares were 4.5% higher in premarket trading as of 5:00 a.m. ET.

Nvidia shares over the past five days.

On Tuesday, Nvidia announced it had hired law firm Wachtell, Lipton, Rosen & Katz to investigate whether company secrets or national security were compromised.

Huang tried to project "business as usual" as he returned to the office on Monday, people familiar with the matter told CNBC. The CEO was also in the office on Tuesday, conducting meetings, ahead of the company's quarterly earnings on Nov. 17.

Investors are assessing whether the matter will have damaging spillover effects on the business.

In a Tuesday note, Bank of America said it saw three scenarios with differing investment outcomes. In one scenario, the impact is contained with leadership continuity, and in another, prolonged uncertainty pressures valuation before earnings.

In the final scenario, the impact is escalated, with "adverse findings, leadership disruption or tighter restrictions requiring earnings reassessment," BofA research analyst Vivek Arya said in the note.