Short seller Culper Research has released a report alleging that Nvidia Corp faces a significant undisclosed revenue problem related to trade restrictions in China.

The report, published on Wednesday, claims that more than 20 percent of the chipmaker's fiscal year 2026 compute revenues came from Chinese demand through illicit diversion and Southeast Asian intermediaries.

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These allegations contradict Nvidia's public statements that its China compute business dropped to zero after trade restrictions were enacted in April 2025.

Alleged Intermediary and Funding Network

According to the research firm, a Singaporean entity named Megaspeed International serves as the primary Southeast Asian buyer for Nvidia.

Culper alleges that Megaspeed International is covertly funded by Alibaba Group Holding through a network of shell companies.

The report points to a balance sheet expansion from $33 million to $3 billion within 12 months as evidence of this funding.

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The short seller notes that this financial surge was supported by billions in refundable deposits from undisclosed sources.

The report also links these supply chain activities to a March 2026 Department of Justice indictment involving Super Micro Computer Inc and OBON Corp.

Culper describes the network as a broader server-smuggling operation.

Supply Chain and Future Risks

Furthermore, partner firm Aivres Systems, formerly known as the blacklisted Inspur Systems, is identified by the researcher as a dedicated supply channel for the Chinese market.

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The document warns of a potential forward revenue deficit for Nvidia as Beijing transitions toward domestic technology alternatives.

Culper Research's allegations raise questions about the accuracy of Nvidia's disclosures regarding its exposure to Chinese demand.

Nvidia has not yet publicly responded to the report.

The semiconductor giant has previously stated that it complies with all export control regulations.

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Investors and analysts will be watching for any official clarification from the company.