When I warned about ‘Jensen Huang’s affair’, I was ridiculed… Short selling report re-evaluated half a year later

A 31-year-old short-selling investor who was ridiculed for warning about the relationship between NVIDIA CEO Jensen Huang and a woman suspected of being a Chinese spy six months ago is belatedly receiving attention.

According to the New York Times (NYT) and the Wall Street Journal (WSJ) on the 11th (local time), Christian LaMarco (31), founder of Culper Research, a short-selling investment firm in New York, published a 40-page report raising suspicions about Nvidia's Chinese business on May 13.

The report also pointed out the "uncomfortably close relationship" between CEO Hwang and Alice Hwang, a former executive at Singapore data center company Megaspeed, a major customer.

LaMarco said it launched an investigation last year after the NYT and Bloomberg News reported that the two had been hanging out with executives from other technology companies in Asia.

Afterwards, Lamarco decided that it would be difficult to find problems in Nvidia, the world's largest company, that other investors had not discovered, so it suspended the investigation for a while and resumed it in March.

This is because officials of U.S. server manufacturer Super Microcomputer were indicted on charges of smuggling Nvidia semiconductors into China in violation of export controls.

He published a report after contacting current and former employees of Nvidia and Megaspeed and analyzing corporate disclosure data from Singapore and Malaysia and videos filmed in Taiwan.

However, the market at the time did not show much interest in the report. On the day of the announcement, Nvidia's stock price actually rose, and hit an all-time high the next day.

LaMarco received messages belittling him or even warning him to “be careful.”

The situation recently took a turn when CEO Hwang admitted to an affair with Alice Hwang, who is suspected of being linked to Chinese intelligence agencies.

The report went viral online, and LaMarco's post received millions of views.

Since the release of the report, Nvidia's market capitalization has decreased by more than $1 trillion. However, it is unclear how much profit LaMarco made from this short selling. He did not disclose the size of his profits or whether he currently maintains a short position on Nvidia stocks.

“Everyone used to mock us, but now everyone is praising us,” LaMarco told the NYT.

He also told the WSJ, “Sometimes people are interested in what you have to say, and sometimes they aren’t,” and “this time, I think it took six months before they became interested.”