Nvidia Corp (NVDA  ) is the subject of a short report released Wednesday by Culper Research, which alleges the semiconductor giant faces a significant and undisclosed "China problem." The report claims that while Nvidia has publicly stated its China compute business dropped to zero following April 2025 trade restrictions, more than 20% of its FY 2026 compute revenues were actually driven by Chinese demand through illegal diversion and Southeast Asian intermediaries.

Benzinga has reached out to Nvidia for comment on the Culper report.

Megaspeed International Linked to Secret Alibaba Financing

The research identifies Singapore-based Megaspeed International as Nvidia's largest Southeast Asian buyer, alleging the firm is secretly financed by Alibaba Group Holding (BABA  ) via a series of shell companies. According to Culper, Megaspeed's balance sheet exploded from just $33 million to $3 billion in a single year, a move fueled almost entirely by $2.9 billion in "refundable deposits" from unnamed sources.

The report further alleges that CEO Jensen Huang maintains an "uncomfortably close" relationship with Megaspeed's leadership and is frequently accompanied by Alibaba representatives during his visits to data centers.

DOJ Indictments and Diversion Risks Threaten Forward Revenue

Furthermore, Culper connects these operations to the March 2026 DOJ indictment involving Super Micro Computer Inc (SMCI  ) and OBON Corp, characterizing Megaspeed as the "tip of the iceberg" in a complex server-smuggling network. The firm also identifies partner Aivres Systems, formerly the blacklisted Inspur Systems, as a de facto China-dedicated supply channel.

Culper warns that as Beijing pivots toward domestic alternatives and clamps down on foreign chips, Nvidia faces a massive "air gap" in its forward revenue estimates.

NVDA Shares Edge Higher Wednesday Afternoon

NVDA Price Action: Nvidia shares were up 2.66% at $226.65 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.