Nvidia's China exposure questioned after short seller's spy allegations

Nvidia shares have fallen about 25% since short seller Culper Research published allegations in May linking CEO Jensen Huang to a Chinese business executive suspected of intelligence ties, prompting the chipmaker to launch an independent investigation. Culper's 40-page report, released May 13, questioned Huang's association with Alice Huang, a former TV reporter and senior executive at Singapore-based Megaspeed International, whom US intelligence suspects of being an asset of China's Ministry of State Security. The firm also alleged over 20% of Nvidia's fiscal 2026 computing revenue remained connected to China through illegal chip diversion via Southeast Asian intermediaries, with Megaspeed and its Malaysian affiliate purchasing $4.8 billion in Nvidia equipment over three years. Senators Elizabeth Warren and Jim Banks had warned in March about large-scale AI chip diversion to China, calling for export licence suspensions. Nvidia's stock traded at $225.83 when the report was published, with shares falling about 25% by Tuesday's close as investor concerns persist.