Nvidia Faces Scrutiny as Up to 20% of Asian Revenue Tied to Complex China Supply Chains
Nvidia co-founder Jensen Huang stepped down as CEO following an investigation, while reports highlight that roughly 20% of the tech giant's fiscal 2026 compute revenue may still be linked to China through Southeast Asian intermediaries.
🏢CompaniesPhoto: Benzinga
Key points
- Culper Research estimates 20% of Nvidia fiscal 2026 compute revenue involves China.
- Jensen Huang resigned as CEO amid an investigation into leadership connections.
- Supply chains reportedly utilize Southeast Asian intermediaries like Megaspeed and Aivres.
Nvidia Corp faces heightened regulatory and operational scrutiny after reports revealed that approximately 20% of its fiscal 2026 compute revenue may still be tied to the Chinese market, navigating around U.S. export controls via Southeast Asian channels. According to a May report from short seller Culper Research, these sales have continued to flow through a web of regional intermediaries despite tightening trade restrictions.
The supply chain route highlighted by trade records begins with San Jose, California-based Aivres Systems—formerly Inspur Systems—which builds servers and counts a blacklisted Chinese parent among its owners. Records show that Speedmatrix, a Malaysian subsidiary of Singapore-based Megaspeed International, imported billions in products, largely from Aivres, between December 2024 and January 2026. Analysts note that Nvidia records revenue based on direct customer headquarters rather than final end-use locations, potentially masking the ultimate destination of the hardware.
The leadership structure at Nvidia has also been upended. Co-founder Jensen Huang resigned from his position as CEO amid an ongoing investigation concerning his relationship with former Megaspeed executive Alice Huang, who faces unverified suspicions from U.S. intelligence officials regarding ties to China’s Ministry of State Security. Meanwhile, Megaspeed has denied any illegal export activities.
Culper’s findings suggest that advanced hardware reaches Chinese entities either through physical cross-border transport or via data centers located in Southeast Asia that lease computing power to firms in China. Similar routing schemes have drawn federal law enforcement attention, including recent Department of Justice charges involving Super Micro Computer Inc.
What to watch next: Monitor potential federal regulatory actions regarding indirect semiconductor shipments and how Nvidia’s interim leadership addresses geographic revenue accounting.
Source Benzinga — benzinga.com/markets/equities/26/11/63253669/huang-out-nvidia-asian… ↗
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