Nvidia Stock Hit by Short Seller's China Ties Allegations

Nvidia's stock has drawn attention as Culper Research takes a short position on the company due to its significant business exposure to China. According to Culper, more than 20% of Nvidia's projected FY2026 compute revenue remains tied to China, despite U.S. export controls.

Culper claims that this exposure is being sustained through illegal GPU diversion networks and the use of Southeast Asian intermediaries. The firm also points out suspicious timing, such as a Malaysian subsidiary of Novagate being incorporated just days after new U.S. restrictions were announced in April 2025.

Nvidia CEO Jensen Huang's recent trip to China with U.S. President Donald Trump has raised questions about the company's ties to the country. The visit focused on trade tensions, AI technology access, and easing restrictions on U.S. chip sales to China.