Megaspeed moved nearly $12 billion of Nvidia chips to Chinese buyers, and the Journal calls the route legal
The Journal calls the pipeline Huang built legal on its face, so only US enforcement can shut it, and Southeast Asian operators are bracing for exactly that two days before Nvidia's first earnings without him.
Richard Tangthree-minute read
Megaspeed, the Singapore company at the center of the arrangement, coordinated deliveries of nearly $12 billion of advanced semiconductors to Chinese firms between March 2024 and June 2025, the Wall Street Journal's records show, and the paper calls the structure legal on its face 1. Jensen Huang cultivated the Asian partner network behind it 1. That legality changes what kind of risk Nvidia−3.21% — Nvidia, down 3.21 percent today carries into Tuesday's earnings, its first print since Huang resigned as CEO on November 12: the threat to the route is enforcement, not fraud 1.
The route never crossed a border
Chinese hyperscalers including Tencent, Alibaba−0.74% — Alibaba, down 0.74 percent today and ByteDance rent American compute from data centers across Southeast Asia instead of importing chips into China 2. The chips are identical, the controls are geographic, and the work of threading between them is done by logistics and contracts, not by anyone breaking a rule. A report published on November 13 had already tied Huang's network to a Huawei Cloud data center and to $7.5 billion of Megaspeed shipments 1; the new facts since are the Journal's higher total and Huang named as the route's builder, plus operators warning a crackdown is coming.
The route is legal until the rules move
Enforcement can touch what technology cannot. Washington can rewrite the rules for data centers outside China without touching Nvidia's products, and operators across Southeast Asia now expect exactly that, the Australian Financial Review reports 2. The route's traffic is visible in the models it fed: a US research group found Blackwell, Nvidia's current top-end data center GPU architecture, in six Chinese models released since April, estimating roughly 12,000 of those GPUs behind China's large-scale training, though the researchers caution they could not locate the chips physically 3.
Guidance already assumes zero China revenue
For holders the question is narrower. Nvidia guided to $108 billion of revenue with no China data center compute revenue assumed 7, so the street's own forecast already excludes the back door, and Chinese training demand will shift to whatever arrangement replaces the route if it closes.
Nvidia's quarterly revenue has nearly tripled in two years, and it guides to $108 billion
- Revenue
- Estimate
Data
| Revenue | |
|---|---|
| Q3 '24 | $35.08B |
| Q4 '24 | $39.33B |
| Q1 '25 | $44.06B |
| Q2 '25 | $46.74B |
| Q3 '25 | $57.01B |
| Q4 '25 | $68.13B |
| Q1 '26 | $81.62B |
| Q2 '26 | $96.22B |
| Q3 '26 guide (estimate) | $108B |
The China line and the clock on enforcement
Two things matter on Tuesday: whether guidance still assumes zero China data center compute revenue, and whether any enforcement action lands before the print or after it.
Nvidia fell after three of its last four earnings reports
Data
| Day-after move | |
|---|---|
| Nov 2025 | -3.2% |
| Feb 2026 | -5.5% |
| May 2026 | -1.8% |
| Aug 2026 | 8.7% |
The surrounding tape has already turned cautious. Bank of America+0.71% — Bank of America, up 0.71 percent today removed Nvidia from its US 1 list, the bank's top stock picks, on November 10 while keeping its Buy rating and explaining nothing 4; the shares fell 1.88% to $175.31 that day after a 4.27% slide the day before 4. The route's fate is not in that guidance, but the crackdown operators expect would be the next fact that moves it 2.
Sources: 1. AI Weekly, 'WSJ: Huang personally built Asia route feeding Nvidia GPUs to China', November 15, 2026 — https://aiweekly.co/alerts/wsj-huang-personally-built-asia-route-feeding-nvidia-gpus-to-china 2. Australian Financial Review, 'Jensen Huang's affair will shut back-door trade of AI chips to China', November 15, 2026 — https://www.afr.com/world/asia/jensen-huang-s-affair-will-shut-back-door-trade-of-ai-chips-to-china-20261115-p61d8g 3. Chosunbiz, 'U.S. lab says Chinese AI models trained on Nvidia Blackwell chips despite sanctions', November 15, 2026 — https://biz.chosun.com/en/en-international/2026/11/15/B6R7HRHBHFD3NLPWEC2VJK6DLY/ 4. TradingView (GuruFocus), 'Micron−4.50% — Micron, down 4.50 percent today, Nvidia and Lam Research−4.53% — Lam Research, down 4.53 percent today Removed From BofA's Top Stock List', November 10, 2026 — https://www.tradingview.com/news/gurufocus:ef2903321094b:0-micron-nvidia-and-lam-research-removed-from-bofa-s-top-stock-list/ 7. 24/7 Wall St., 'Nvidia Reports Earnings Tuesday Without Jensen Huang for the First Time', November 12, 2026 — https://247wallst.com/investing/2026/11/12/nvidia-reports-earnings-tuesday-without-jensen-huang-for-the-first-time-it-promised-108-billion-and-the-stock-fell-after-3-of-its-last-4-reports/
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More about NVIDIA
NVDAFiscal Q2 2027Revenue rose 106% to $96.2B, 92.5% of it from Data Center, “driven by the ramp of our Blackwell Ultra infrastructure”. Gains on equity stakes of $7.8B lifted net income to $59.7B.
Show as a table
| Line | Value |
|---|---|
| Revenue | $96.2B |
| Gross margin | 75.0% |
| Operating margin | 66.2% |
| Net income | $59.7B |
| Hyperscale | $48.7B |
| AI clouds & enterprise | $40.3B |
| Data Center | $89.0B |
| Edge Computing | $7.2B |
| Gross profit | $72.1B |
| Cost of revenue | $24.1B |
| Other income | $7.8B |
| Operating income | $63.7B |
| Operating expenses | $8.4B |
| Tax | $11.8B |
| R&D | $7.1B |
| SG&A | $1.4B |
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