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Nvidia China Exposure Sparks New Doubts
9 Nov
Summary
- Short seller revives concerns about Nvidia's China business.
- Allegations suggest chips reach China via intermediaries.
- Nvidia CEO's ties to Megaspeed face renewed scrutiny.
Nvidia is facing renewed scrutiny over its business ties to China, with short seller Culper Research reviving concerns initially raised in May. The research firm alleges that despite US export restrictions implemented in April 2025, Nvidia's chips continue to reach Chinese customers through illegal diversion and intermediaries in Southeast Asia.
Central to these allegations is Singapore-based Megaspeed, described as Nvidia's largest Southeast Asian chip buyer. Culper Research claims Megaspeed received substantial funding from Alibaba via shell companies and questions Nvidia's assessment of this partner. Furthermore, Nvidia CEO Jensen Huang's association with a Megaspeed executive is under renewed examination, with Culper describing the relationship as "uncomfortably close".
Culper Research initially disclosed a short position in Nvidia, arguing that investors were underestimating the company's China exposure. The firm predicted that China could become a significant gap in Nvidia's future revenue expectations, suggesting Beijing might increasingly favor domestic chipmakers.
