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'Tip Of The Iceberg': Culper Research Targets Nvidia's Alleged China Problem
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The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational. Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Nvidia Corp is the subject of a short report released Wednesday by Culper Research, which alleges the semiconductor giant faces a significant and undisclosed “China problem.” The report claims that while Nvidia has publicly stated its China compute business dropped to zero following April 2025 trade restrictions, more than 20% of its FY 2026 compute revenues were actually driven by Chinese demand through illegal diversion and Southeast Asian intermediaries. Benzinga has reached out to Nvidia for comment on the Culper report. Don't Miss: A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and why Still Learning the Market? These 50 Must-Know Terms Can Help You Catch Up Fast The research identifies Singapore-based Megaspeed International as Nvidia’s largest Southeast Asian buyer, alleging the firm is secretly financed by Alibaba Group Holding via a series of shell companies. According to Culper, Megaspeed's balance sheet exploded from just $33 million to $3 billion in a single year, a move fueled almost entirely by $2.9 billion in “refundable deposits” from unnamed sources. The report further alleges that CEO Jensen Huang maintains an “uncomfortably close” relationship with Megaspeed's leadership and is frequently accompanied by Alibaba representatives during his visits to data centers. Trending: Avoid the #1 Investing Mistake: How Your ‘Safe' Holdings Could Be Costing You Big Time Furthermore, Culper connects these operations to the March 2026 DOJ indictment involving Super Micro Computer Inc and OBON Corp, characterizing Megaspeed as the “tip of the iceberg” in a complex server-smuggling network. The firm also identifies partner Aivres Systems, formerly the blacklisted Inspur Systems, as a de facto China-dedicated supply channel. Culper warns that as Beijing pivots toward domestic alternatives and clamps down on foreign chips, Nvidia faces a massive “air gap” in its forward revenue estimates. Image: Shutterstock Read Next: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier. Think you're saving enough for your kids? You might be dangerously off — see why Building a resilient portfolio means thinking beyond a single asset or market trend. 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