Nvidia is facing fresh scrutiny over its China exposure and its business ties to Singapore-based Megaspeed, reviving questions raised by short seller Culper Research nearly six months ago.
The New York-based activist research firm had flagged the risks in May, when Nvidia shares were scaling record highs. In a 40-page report titled NVIDIA (NVDA): The China Problem, Culper disclosed a short position in the chipmaker, arguing that investors were overlooking the extent of its exposure to China.
The report has resurfaced amid fresh attention on Nvidia CEO Jensen Huang's association with Megaspeed and allegations of a possible Chinese espionage operation involving a senior executive at the company's cloud partner.
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"We are short Nvidia for one reason: the Company has a significant China problem," Culper said in its report, clarifying that its position was not a bet against the broader artificial intelligence opportunity.
At the centre of its argument was the claim that more than 20% of Nvidia's fiscal 2026 computing revenue continued to be driven by China, despite the company's assertion that its business in the country had fallen to zero following US export restrictions introduced in April 2025.
Culper alleged that Nvidia chips continued reaching Chinese customers through illegal diversion and Southeast Asian intermediaries.
A key part of the report focused on Singapore-based Megaspeed, which Culper described as Nvidia's largest Southeast Asian chip buyer.
In a post on X on May 13, the research firm alleged that Megaspeed had been financed by Alibaba through a network of Singapore-based shell companies. It also questioned Nvidia's assessment of the company as having no Chinese ownership or diversion-related concerns.
NEW: We are short Nvidia $NVDA. We believe Nvidia has a significant China problem. Please see our full report and disclosures now available on our website, link in bio. https://t.co/oTaJyL7S2R
— Culper (@CulperResearch) May 13, 2026
Culper pointed to Megaspeed's financial statements, which showed that its total liabilities and equity surged from $33 million at the end of 2023 to $3 billion a year later.
The firm attributed much of this increase to $2.9 billion in refundable deposits received from an unidentified source. According to Culper, a substantial portion of the funds was subsequently transferred to subsidiaries, including Malaysia-based Speedmatrix.
The report also drew attention to Huang's association with Megaspeed executive Alice Huang, describing the relationship as "uncomfortably close". Culper argued that the Nvidia CEO had been closely associated with Megaspeed's operations.
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These allegations, however, remain claims made by a short seller and do not, by themselves, establish wrongdoing by Nvidia or its executives.
Culper's warning came at a time when investor optimism around Nvidia's potential return to the Chinese market remained strong. The firm took the opposite view, arguing that Beijing was increasingly favouring domestic chipmakers and could shut Nvidia out of the market.
It warned that China could become a significant gap in Nvidia's fiscal 2027 and calendar 2026 revenue expectations.
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