The Nvidia share price was attractive by one key metric even before news of chief executive Jensen Huang’s affair with a suspected spy for China, but they have fallen further this week.

Investors had already been spooked by the Democrats’ ‘blue wave’ win in the US midterm elections, the related risk that data centre building could be slowed and questions over how viable the funding for many AI companies is with interest rates rising.

There comes a point when all the bad news is already reflected in share prices. Correctly identifying this, however, is not easy.

While Nvidia is integral to the development of AI and we are still in the very early stages of that, there are some significant risks…