Someone Warned About Nvidia’s China Problems in May: Nobody Listened Until Wall Street Took Notice

Christian Lamarco, founder of short-selling firm Culper Research, published a 40-page report questioning Nvidia's China business on 13 May 2026.

The warning initially attracted limited investor attention, but renewed scrutiny of Chief Executive Jensen Huang, former Megaspeed executive Alice Huang and the Singapore-based company's business dealings has brought the research back into focus.

Culper's report challenged Nvidia's position that its China compute business had fallen to zero after US export restrictions introduced in April 2025.

It alleged that Chinese demand was still reaching the chipmaker through Southeast Asian intermediaries, making Megaspeed International central to its argument.

Culper's Nvidia China Warning Focused On Megaspeed

The firm disclosed that it was shorting Nvidia shares, meaning it stood to benefit if the stock fell. In its report, Culper estimated that more than 20 per cent of Nvidia's fiscal 2026 compute revenue remained driven by China.

It attributed that exposure to alleged illegal diversion of graphics processing units and sales through intermediaries in Southeast Asia. The figure was Culper's estimate, not a revenue number reported by Nvidia or an independently established finding.

Megaspeed, a Singapore-based data centre and cloud computing company, was a central focus. Culper said company filings suggested that Alibaba had financed Megaspeed through intermediary entities.

The report separately examined Jensen Huang's association with Alice Huang, then a Megaspeed executive.

Culper described their relationship as 'uncomfortably close' and cited photographs and other material showing them together. Its May report did not establish espionage, an affair or illegal chip transfers.

Nvidia's Investigation And Megaspeed's Response

US intelligence officials reportedly suspected Alice Huang of links to China's Ministry of State Security, although the allegations remain unverified.

Jensen Huang has acknowledged an extramarital relationship with her, but this does not establish any intelligence links or wrongdoing involving Nvidia's chip exports.

On 8 November, Nvidia's board announced an independent investigation into reports that its chief executive had been targeted by a foreign intelligence effort.

The board said it had no reason to believe national security or Nvidia's secrets had been compromised, and said Huang had agreed to co-operate with the review.

Megaspeed has also responded to the scrutiny. On 12 November, chairman and chief executive James Tan Yong Pong said the company took US export-control compliance seriously and had co-operated with inspections by the Commerce Department's Bureau of Industry and Security.

The company also commissioned an independent inventory of its graphics processing units and a review of its export-control practices.

These steps are important because the allegations against Megaspeed have not been established as proven violations.

Neither the May report nor the subsequent public statements establish that Nvidia knowingly facilitated illegal exports or that Megaspeed diverted restricted chips to China.

Why Lamarco's Warning Is Being Revisited

Lamarco's research is now being reconsidered as investors assess the risks surrounding Nvidia's China exposure, its customer relationships and its leadership. Culper's short position is also unresolved from a financial perspective.

Lamarco has not disclosed how much the firm made, if anything, from its Nvidia trade, and the available information does not establish whether it still holds the position.

The report stands as an early warning, but whether its most serious allegations are substantiated will depend on evidence emerging from the investigations.