This Short Seller Flagged Jensen Huang’s Ties to Alice Huang 6 Months Before Nvidia’s Scandal
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On May 13, 2026, the New York short seller Culper Research published a report. It said NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) CEO Jensen Huang was “uncomfortably close” to Alice Huang (no relation). She is an executive at the Singapore chip buyer Megaspeed. Culper disclosed a short position, so it profits if the stock falls.
Its 40-page report said Huang had been seen partying and socializing with her on several occasions. It added that some NVIDIA employees questioned whether the two had a special relationship.
On November 8, Huang admitted in a staff memo that he had been unfaithful to his wife. NVIDIA’s board opened an independent investigation.
The stock fell 4.27% on November 9 to close at $178.67, a market value of $4.31 trillion, and traded at $180.50 after hours. That close was 20.9% below the May 13 close.
What Culper Alleged in May
Culper’s report tracked money and chips through Megaspeed, which it called NVIDIA’s largest Southeast Asian buyer.
Culper alleged that more than 20% of fiscal 2026 compute revenue was still driven by Chinese demand through illegal diversion and Southeast Asian intermediaries. NVIDIA had said its China compute business went to zero after the April 2025 export restrictions.
It also alleged that Alibaba (NYSE:BABA) secretly financed Megaspeed through shell companies. According to Culper, Megaspeed’s balance sheet grew from $33 million at the end of 2023 to about $3 billion a year later. Most of the increase came from $2.9 billion in refundable deposits from unknown sources.
Why Investors Ignored the Report
Shares rose 2.29% to $225.83 on May 13, then gained 4.39% to $235.74 the next day. They set a record close of $239.24 on October 6.
Markets tend to discount short reports on very large companies because the author profits from a decline and the claims are hard to check. Growth also outweighed the report: second-quarter revenue rose 105.85% from a year earlier.
The drop since then includes the November 5 AI-chip selloff, so Culper alone did not cause it.
Which Claims Now Have Outside Support
The Alibaba claim now has partial support. On November 9, documents were reported to show that Alibaba lent money to Megaspeed through subsidiaries.
On October 29, U.S. officials reportedly concluded that Alice Huang was a Chinese intelligence asset, a finding that is unproven and that China’s Foreign Ministry calls unsupported.
Several claims remain unverified. They include the China-driven revenue share and the allegation that Megaspeed’s subsidiary Speedmatrix imported $4.6 billion of goods, about $4 billion of it from NVIDIA partner Aivres Systems. NVIDIA’s only defense on record is from October 29, when a spokesperson said the diversion claims had been looked into and debunked the year before.
Why Diversion Matters More Than the Memo
If the illegal China-driven demand is real, NVIDIA faces export-control, legal, and revenue-quality risk. Data Center revenue was $89.023 billion last quarter, so that allegation goes to the core of the business.
If Culper is wrong, the probe is mainly a governance and key-person problem. That is serious, but the business can absorb it while it guides to $108.0 billion in quarterly revenue.
What NVIDIA Investors Need to Watch Before November 17
NVIDIA’s business still appears intact despite the board investigation, although the probe’s outcome remains uncertain. The forecast excludes any China data center compute revenue.
The earnings report expected November 17 is the next test. Management did not mention Culper or Alice Huang on the August call, so it needs to address China exposure, Southeast Asian customers, and the investigation’s scope.
Investors exploring AI chip exposure with less reliance on one CEO may also look at VanEck Semiconductor ETF (NASDAQ:SMH). It holds NVIDIA alongside a basket of other chipmakers.
The outlook would weaken if the stock closes below $178.67 after the November 17 report. A filing showing the investigation covers Megaspeed or export compliance would do, too.
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Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
