Culper Research short Nvidia, sees ‘significant China problem’

Culper Research said in a recently published report that it is short Nvidia (NVDA). “We recognize the stakes. Nvidia holds the single largest market capitalization on the planet, while CEO Jensen Huang has been celebrated as a generationally talented operator. We share the consensus view that AI – for better or worse – will continue to transform society. This is not a bet against AI. We are short Nvidia for one reason: the company has a significant China problem,” Culper explained. “Nvidia claims that its business in China went to “zero” after April 2025 U.S. trade restrictions. We believe that in reality, over 20% of Nvidia’s FY 2026 compute revenues remained driven by China – supported both by illegal GPU diversion and Southeast Asian intermediaries,” the report reads. “Analysts treat China as potential upside. We believe it’s the exact opposite. Nvidia’s China business – which the company told investors went to zero a year ago – is now actually going to zero as Beijing’s late 2025 and early 2026 policies have, for example, blocked Nvidia imports in favor of its own domestic alternatives. Beijing’s stance appears hardline. “

Claim 55% Off TipRanks