- NVIDIA shares rose 3% despite short seller Culper Research highlighting risks tied to the company’s significant business exposure to China.
- Culper alleges over 20% of Nvidia‘s FY2026 compute revenue is tied to China, sustained via illegal GPU diversion networks and Southeast Asian intermediaries.
- Nvidia CEO Jensen Huang joined President Trump on a high-profile trip to China, focusing on trade tensions and Ai technology access.
- Retail sentiment on platforms like Stocktwits remained extremely bullish, though some users expressed concerns about a potential stock decline.
On May 13, 2026, Nvidia CEO Jensen Huang joined U.S. President Donald Trump on Air Force One for a high-profile summit in Beijing with Chinese President Xi Jinping. This trip focuses on easing restrictions on U.S. chip sales amid ongoing trade tensions. However, short seller Culper Research disclosed a short position on NVDA stock the same week, warning of significant China-related risks.
Culper’s central thesis is that, despite U.S. export controls, more than 20% of Nvidia’s projected FY2026 compute revenue remains tied to China. According to Culper, this exposure is being sustained through illegal GPU diversion networks and the use of Southeast Asian intermediaries. The report specifically highlights entities like Megaspeed and Malaysia-based firms Speedmatrix and Novagate Cloud.
It claims Nvidia’s Elite OEM partner Giga Computing has shipped over $500 million worth of H200 and Blackwell servers to these channels. Culper also points to suspicious timing, such as a Malaysian subsidiary of Novagate being incorporated just days after new U.S. restrictions were announced in April 2025. Consequently, the short seller questions whether Nvidia has taken sufficient action to stop detectable diversion activities.
Culper further asserts that Beijing is actively cracking down on foreign chips and accelerating domestic AI alternatives. This could lead to a structural decline in Nvidia’s China business and a potential $30 billion-plus revenue shortfall. Meanwhile, retail trader sentiment on Stocktwits stayed extremely bullish, with one user expressing optimism for positive outcomes from Trump’s China visit, which will help the NVDA share price. Yet another user, however, opined that the stock will crash on Thursday.
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