NVDA topped a $5.5 trillion market cap on Wednesday, the first company in history to hit the level. Earnings land May 20.<\/p>\n
The Culper Allegations<\/p>\n
Culper, which disclosed it is short the stock, alleges<\/a> that more than 20% of Nvidia\u2019s FY 2026 compute revenue was still driven by China through illegal GPU diversion and Southeast Asian intermediaries, despite Huang\u2019s repeated claim that the company is \u201c100% out of China.\u201d<\/p>\n The report\u2019s central claim involves Megaspeed International, reportedly Nvidia\u2019s largest chip buyer in Southeast Asia. <\/p>\n Nvidia has previously told the New York Times that Megaspeed is \u201cwholly owned and operated by a company based and headquartered outside China, with no China shareholders.\u201d <\/p>\n Culper notes the carefully lawyered phrasing covers equity, not financing.<\/p>\n The Real Downside<\/p>\n The bigger problem for Nvidia bulls, according to Culper, is that the hidden China revenue stream is about to disappear for real.<\/p>\n Beijing has spent the last six months cracking down on foreign AI chips. China blocked H200 shipments at the border in January, ordered state-funded data centers to cut ties with Nvidia in November, and is pushing domestic alternatives from Huawei, Cambricon, and Alibaba\u2019s T-Head.<\/p>\n White House AI czar David Sacks said in December that China is \u201crejecting our chips.\u201d U.S. Commerce Secretary Howard Lutnick told the Senate in April that China has bought zero H200 chips.<\/p>\n Polymarket traders<\/a> are skeptical of any meaningful announcements from the China summit, pricing rare earth export relief at just 16% and Iran negotiation participation at 29%.<\/p>\n Nvidia did not immediately respond to a request for comment from Benzinga.<\/p>\n Image: Shutterstock<\/p>\n