Short seller Culper Research issued a report on Nvidia Corp. (NASDAQ:NVDA) in May, citing the company’s close ties to China. Many investors ignored the report at the time. Six months later, its warnings are back in the spotlight after CEO Jensen Huang resigned Thursday amid political and regulatory scrutiny tied to China.
Taking on the Giant
Culper Research is one of many short sellers regularly covered by Benzinga. The firm publishes reports on companies whose stocks it believes could fall significantly.
In the case of Nvidia, Culper alleged that while the company said its China compute business fell to zero after April 2025 U.S. trade restrictions, more than 20% of its fiscal 2026 compute revenue was actually driven by Chinese demand.
“This is not a bet against AI. We are short Nvidia for one reason: the company has a significant China problem,” the original report said.
The report alleged that Chinese demand reached Nvidia through Southeast Asian intermediaries, including Singapore-based Megaspeed International.
The report also said Jensen Huang had maintained an “uncomfortably close” relationship with Megaspeed leadership.
Late last month, Alice Huang, a senior Megaspeed executive, was reported to be a suspected Chinese intelligence asset. Jensen Huang has since admitted to having an affair with her, and her Megaspeed ties put the Culper Research short report back in the spotlight.
Jensen Huang resigned as Nvidia CEO on Thursday, and CFO Colette Kress was named interim CEO.
“We are short Nvidia. We believe Nvidia has a significant China problem,” Culper Research said in a May 13 post on X that it has since pinned.
Despite Culper’s 97,000 followers, Nvidia’s size as one of the world’s biggest companies spared it the immediate drop some short-report targets suffer. The stock closed up 2.3% on May 13 and traded at a new 52-week high that day.
In fact, most investors appear to have ignored the warning signs. Many may now wish they had joined Culper on the short side.
Nvidia stock hit an intraday high of $227.84 on May 13. With shares trading at about $164 on Thursday, the stock is down about 28% from that level.
Culper Gains Spotlight
The short report has put Culper Research, founded by 31-year-old Christian Lamarco, in the spotlight. A Wall Street Journal report highlights how many investors missed or ignored the original Nvidia report while also profiling Lamarco.
The firm takes its name from the spies who brought intelligence to George Washington during the American Revolutionary War.
With Nvidia stock down more than 25% and more than $1 trillion in market value erased since Culper’s report, the firm could draw even more attention when it issues its next short call.
A look back at Culper’s 2026 calls shows several big winners. Here are some of its targets this year:
- October: Cerebras Systems (NASDAQ:CBRS)
- July: Tarsus Pharmaceuticals (NASDAQ:TARS)
- March: ADMA Biologics (NASDAQ:ADMA)
- March: Ethereum (CRYPTO:ETH)
- March: Bitmine Immersion Technologies (NYSE:BMNR)
- February: NexGen Energy (NYSE:NXE)
- February: Archer Aviation (NYSE:ACHR)
- January: T1 Energy (NYSE:TE)
Cerebras Systems, NexGen Energy, Archer Aviation and T1 Energy trade below their levels in the months Culper published, with T1 Energy down more than 70%. Tarsus Pharmaceuticals and ADMA Biologics have climbed since the reports, while Ethereum and Bitmine trade within their March ranges.
NVDA Price Action: Nvidia shares were down 5.61% at $163.99 at the time of publication Thursday, according to Benzinga Pro data.
Photo: Shutterstock
