Nvidia scandal fails to bring down the tech bulls as spy investigation widens

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Hello, this is Leonie Kidd with today's edition of Morning Squawk.

Nvidia is dominating the headlines, but it's not holding back the bulls. 

A solid rally across Wall Street, driven by some of the big chip names, came against a backdrop of serious concerns over the future of Jensen Huang's leadership and what that means for the AI behemoth. 

But the devil remains in the details...

Happening now: Nvidia's nightmare

There are some key developments in the Nvidia scandal, as the AI giant could now face an FBI investigation into CEO Jensen Huang's conduct.

President Donald Trump said during a press conference in the White House on Monday that he had spoken to Huang and that the CEO had denied knowing the woman he was having an affair with "was a spy" for China. "I know the FBI is looking into it," Trump also said.

More key developments: 

• A Los Angeles law firm has filed a class action lawsuit representing shareholders against Nvidia and Huang in a federal court in San Jose, California. It accuses the defendants of making false or misleading statements that present a material risk to the company. 
• Lawyer Stephen Neal has emerged as a key figure in Nvidia's internal investigation into Huang, as he has been named the board's lead independent director.
• The lack of succession planning is concerning investors. CNBC has analyzed who reports to Huang directly and could step up if he is forced to step aside. 

Nvidia shares are trading higher premarket, up by around 1% after falling over 4% on Monday. 

• Cramer's take: Jim Cramer says investors need to prepare for a "Jensen-less Nvidia," adding that if Huang leaves, then "you can no longer be bound by our 'own it, don't trade it' mantra, which has been the default view of the CNBC Investing Club."

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Big Movers: Buying the chip

Chip stocks are mixed in premarket trading after that blistering rally on Monday.