Short-Seller Culper Flagged Huang's China Ties Six Months Before Scandal
NVDA is trading near its 52-week low of $164.27 (9.9% above the low) on elevated volume (3.8× avg).
Summary
Culper Research published a May 2026 short report titled 'Nvidia: The China Problem' warning about CEO Jensen Huang's alleged relationship with Alice Huang, a Chinese tech executive, months before the story became a full-blown scandal. The report also alleged Nvidia's lost China business was redirected through Southeast Asia, claiming Megaspeed was secretly funded by Alibaba via shell companies and that its liabilities and equity jumped from $33 million at end-2023 to about $3 billion by end-2024. The article adds that the New York Times reported a Commerce Department investigation into Megaspeed was stopped late last year after outreach from Nvidia. President Trump said the FBI is 'looking into' the Nvidia boss, and the affair wiped $7 billion off Huang's fortune in a day. Shares fell nearly 9% intraday Monday before closing down 4.3%, extending the damage from the FBI examination and shareholder class action already in the headlines. The new element is the paper trail: a documented short thesis and a halted federal probe give plaintiffs and regulators concrete material to work with, raising the odds this becomes a governance and disclosure fight rather than a tabloid story.
At the time of this announcement, NVDA was trading at $180.50 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.3T. The 52-week trading range was $164.27 to $243.37. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: CNBC TV18.