This Short Seller Flagged Jensen Huang’s Ties to Alice Huang 6 Months Before Nvidia’s Scandal Omor Ibne Ehsan Tue, November 10, 2026 at 8:27 AM EST 5 min read NVDA -1.68% BABA -0.99% SMH -2.68% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
NVIDIA (NVDA) fell 4% after Jensen Huang admitted infidelity and the board opened a probe, leaving shares 21% below their May peak.
Culper alleged Alibaba (BABA) secretly financed Megaspeed through shell companies, and November 9 documents now partly support that claim.
If Culper's illegal China-diversion claim proves true, NVIDIA faces export-control, legal and revenue-quality risks hitting its core Data Center business.
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On May 13, 2026, the New York short seller Culper Research published a report. It said NVIDIA (NASDAQ:NVDA) 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.
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.
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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.
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.
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.
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.
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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