With all the news about Nvidia CEO Jensen Huang, I thought it was timely to discuss risk oversight. My initial research led me to write the following
The poor governance and risk oversight practices at many tech companies are well-known to organizations that monitor corporate governance. These poor practices and many enterprise risk topics like company and CEO reputation, succession planning, and corporate security are now closely associated with Nvidia. Nvidia is one of the most valuable companies in the world and possible the keystone to the AI economy globally.
“The question every other company needs to be thinking about is, ‘Are we always thinking about management depth, succession and risk management?’” said Tom Monahan, CEO of Heidrick & Struggles.
My research took me to find the Culpepper Research analysis from May 2026 I had read about earlier in the day.
The situation may be a much bigger problem for Nvidia than I understood earlier today.
“We are short Nvidia (“NVDA”, “the Company”). 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.”
The Culpepper analysis goes on the say that it believes that 20% of Nvidia’s FY 2026 compute revenues are driven by China and Megaspeed sits at the center of one of the main diversion schemes to enable this making the following claims that Megaspeed is:
Nvidia’s largest Southeast Asian chip supplier
Under investigation by US Commerce and Singapore authorities
Secretly financed by Alibaba through a series of shell companies
A conduit to divert Nvidia hardware in violation of US trade restrictions implemented in April 2025
“Nvidia CEO Jensen Huang has not only vouched for Megaspeed, but seems to have quite literally walked alongside Megaspeed at every step, while maintaining an uncomfortably close relationship with Megaspeed’s Alice Huang, a Chinese national.”
Finally the research says that Nvidia has the capability to prevent and detect diversion through “pre-sale signposts and stand KYC checks…as well as post-sale technical indicators - e.g., server IP data, mismatched server latency times, and servers “going dark” without explanation.”
The Culpepper Research document “NVIDIA (NVDA): The China Problem “ can be found at https://culperresearch.com/wp-content/uploads/2026/05/Culper_NVDA_5-13-2026.pdf
Delcreo can help Boards with their risk oversight process and help leaders spot new and emerging risks. Learn more about DelCreo and how we help our customers, or book a call today.